AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 585
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....t into DTA from 100% EOU status. During scrutiny of ER-1 returns for the month of September 2013, it was noticed that the appellants had taken CENVAT Credit on the duty paid on capital goods received under Notification No. 22/2003-CE dated 31.03.2003 and Notification No. 52/2003-Cus. dated 31.03.2003 at the time of de-bonding. 2. The Department was of the view that the proviso to Rule 3(1) of the CENVAT Credit Rules ('CCR' for short), 2004 was only for allowing credit in respect of the amount equal to Central Excise Duty paid on the capital goods at the time of de-bonding of the unit in terms of paragraph 8 of Notification No. 22/2003-CE. That CCR, 2004 does not allow credit in respect of the duty paid in terms of Notification No. 52/2003-....
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....culminated in the confirmation of demand vide Order-in-Original No. 45/2014 dated 30.09.2014 against which the appellant had preferred an appeal before the Tribunal. The appellant's case was considered along with another appeal and vide common Final Order Nos. 40274-40275/2017 dated 14.02.2017, the Tribunal held the issue of availing credit of the CVD paid on imported capital goods in favour of the appellant. However, the issue with regard to the eligibility of credit on inputs and raw materials was held against the appellant. The appellants have filed an appeal before the Hon'ble High Court against the disallowance of credit on inputs and raw materials which is pending. 3.2 He pointed out that the Department has disallowed the credit on t....
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.... Ltd. reported in 2008 (221) E.L.T. 435 (Tri. - Mumbai). In paragraph 4 of the said judgement, the Tribunal had discussed the eligibility of credit on the amount equal to Central Excise Duty paid on indigenous capital goods. During the relevant period, the Board Circular allowed the credit of the CVD paid on imported capital goods as well as the Central Excise Duty paid on indigenous capital goods. The Department had rejected the claim of Credit of the appellant on the Central Excise Duty paid on indigenous capital goods, for which the appellant had preferred an appeal before the Commissioner (Appeals), who decided the issue in favour of the assessee. In the appeal filed by the Department before the Tribunal, it was held that the view of th....
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....the very same issue of eligibility of 50% of the credit of capital goods availed by the appellant at the time of de-bonding was disputed by the Department for which a Show Cause Notice had been issued. The said matter reached the Tribunal and vide Final Order Nos. 40274-40275/2017 dated 14.02.2017, the Tribunal held the issue in favour of the appellant. The relevant paragraph is noted as under : "19. As regard the admissibility of cenvat credit on imported capital goods (Sl.No.3 of the Table at page 6 of OIO), the Commissioner has held that the assessee is eligible to take cenvat credit of Rs. 5,67,390/- of CVD/AED paid on imported machinery and tools. He also held that TR-6 challan is a valid document to take cenvat credit of CVD/AED in ....
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.... occasion to analyze the issue of the credit availed on Excise Duty paid on indigenous capital goods before the amendment was brought forth to Rule 3(1) by adding the proviso. In the said decision, the Tribunal had held that the Board Circular clarifies with regard to the eligibility of credit on the CVD paid on imported capital goods. The issue with regard to the Central Excise Duty paid on indigenous capital goods was then decided in favour of the appellant. The said decision has been upheld by the Hon'ble High Court of Bombay. When the Board Circular clarifies that the credit of CVD paid on imported capital goods is eligible, the non-mention of the said Notification No. 52/2003-Cus. in Rule 3(1) of the CCR, 2004 does not make much releva....