2017 (10) TMI 609

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...., AC (AR), for the Respondent. ORDER Per Bench The issue involved is the availment of Cenvat credit on inputs procured by the appellants from an EHTP unit during the period from December 2005 to January 2006. 2. The brief facts are that the appellants are engaged in the manufacture of multiplexers and are availing facility of Cenvat Credit on inputs viz., printed circuit boards supplie....

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....g authority. Hence this appeal. 3. On behalf of the appellant, the Ld. Counsel Ms. Rukmani Menon adverted to Sub Rue 7 of Rule 3 of CCR, which is reproduced as under:- "(7) Notwithstanding anything contained in sub-rule (1)[, sub-rule (1a)] and sub-rule (4), - (a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred per cent. export-oriented und....

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..../100) multiplied by (CVD/100)}], where BCD and CVD denote ad valorem rates, in per cent. of basic customs duty and additional duty of customs leviable on the inputs or the capital goods respectively and X denotes the assessable value : She submitted that the said rule that only 50% credit can be availed is applicable only when the EHTP unit who has supplied the goods to the appellant pays duty ....

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....impugned order. 5. Heard both sides. It is indeed clear from the records as well as from the submissions made by both sides that the EHTP unit has not paid duty by availing the exemption under Sl.No.2 of the Notification No.23/2003. The primary purpose and scope of Cenvat Credit scheme is to neutralize the cascading effect of duty portion on inputs suffered by the manufacturer. It is not disput....