2018 (9) TMI 632

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....ed to purchase the goods/ inputs duty free, under Notification No. 22/2003. 2. The brief facts are as follows:- "2.1. Briefly stated the facts involved in the case are that the appellant is a 100% EOU engaged in the manufacture & export of excisable goods i.e. 'Automotive Components' falling under Chapter Heading No. 8409 of the First Schedule to Central Excise Tariff Act, 1985. The appellant had procured „Casting Articles‟ from M/s Continental Engines Limited (Foundry Division), SP-312, RIICO Industrial Area, Bhiwadi (sister concern and a DTA unit also) on payment of Central Excise duty and availed cenvat credit of the duty paid and filed the above mentioned refund claim for refund of the cenvat credit amounting to Rs. 2,3993....

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....ence, in view of the Order-in-Appeal dated 15.09.2017, having attained finality, I observe that the Appeal filed by the appellants are liable to be accepted and the impugned order is liable to be rejected." 4. Being aggrieved, Revenue is in Appeal on the ground that the assesse/ respondent being a 100% EOU, under Para 6.11(C) of the FTP, is entitled to exemption from payment of Central Excise Duty on the goods procured from DTA unit, being the goods manufactured in India. The cenvat credit on service tax was allowed vide Notification No. 18/2004-CE dated 06.09.2004. Further, Notification No. 22/2003/CE granted to an EOU exemption from payment of Central Excise Duty. Thus, a 100% EOU can avail cenvat credit on service tax and may utilise t....

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....of cenvat credit of Central Excise duty paid in respect of raw materials procured from DTA units, under Rule 5 of CCR, 2004 to the assesse and thereby mis-interpreting the provisions? The Hon'ble High Court relying on the ruling of Karnataka High Court in Commissioner of Customs, Bangalore Vs ANZ International 2009 (233) ELT 40 (Kar.) which was affirmed by the Hon'ble Supreme Court at 2009 (240) ELT A 16 (S.C.), by observing that 100% EOU is entitled to take cenvat credit on goods/inputs procured in the industry, and when they were not in a position to utilise the same, they are entitlement for benefit of refund under Rule 5 of CCR 2004. The Hon'ble High Court upheld the findings of the Appellate Authority - "I find that in this case it is....