TaxTMI 
TaxTMI 
2021 (9) TMI 35
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.... a manufacturer of knitting machines. They manufactured and cleared knitting machines to 100% EOU without payment of duty in terms of Notification No.1/95-CE dt. 04.01.1995. Along with the final products, they also cleared some inputs which they have received as such to the 100% EOU. All these clearances were made against Form CT-3 issued by the jurisdictional Central Excise officer having control over the 100% EOU. As far as the clearances of the final products by the appellant are concerned, there is no dispute. What is in dispute is whether appellant could avail modvat credit on the inputs which they have received and thereafter cleared them as such to a 100% EOU without reversing the Modvat credit availed by them. Show cause notices wer....
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.... dt. 10.10.2008 held against the assessee. The issue identified by the Larger Bench is in para-1 of the order as follows : "Whether, during the period March, 1996 to May, 1998, a manufacturer of final product, who procured inputs and availed MODAT credit thereon, was entitled to remove the inputs a such, without reversal of the credit or payment of equivalent amount of duty, to a 100% EOU under CT-3 certificate in terms of Notification No.1/95-CE dated 04.01.1995'' and the decision was made in paras 6.8 and 7 of the order which read as follows : "6.8 We hold that the Notification 1/95 is not applicable to the present case and the clearances are governed only by the provisions of Rule 57F. We hold that the inputs cleared....
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.... Machine Works Limited (supra) and the matter shall be clubbed and heard together with other connected matters. No costs." 5. Hence these appeals have come before us. 6. The argument of the Ld. Counsel for the appellant is that inputs cleared as such to 100% EOU are eligible for Exemption Notification No.1/1995-CE dt. 04.01.1995 even though they did not fulfill condition No.(1) (b) of the Notification which reads as follows: "In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act/ 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government being satisfied th....
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....sp; hundred per cent export oriented undertaking has been approved by the Board of Approval for hundred per cent export oriented undertaking (hereinafter referred to as the said Board) appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act; (ii) unit in Electronic Hardware Technology Park (EHTP) Scheme has been approved by the inter-Ministerial Standing Committee (hereinafter referred to as the said Committee) appointed by the notification of the Government of India in the Ministry of Industry (Department of Industrial Development) No. S.O. 117(E), dated the 22nd February, 1993; (iii)....
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....1) Whether the Tribunal is correct in holding that the Notification No. 22/2003 would be applicable to the present case i.e., the imported capital goods on which Cenvat credit was availed and removed without payment of duty, under the cover of CT-3, is correct and legal? (2) Whether the Hon'ble Tribunal is correct in holding that the terms "Capital goods as such" occurring in Rule 3(4) of Cenvat Credit Rules 2002 refers to only "Unused cenvated capital goods? (3) Whether the assessee was entitled to the benefit of Cenvat credit availed in respect of inputs?" As far as inputs are concerned, the judgement was as follows :- "15. In so far as the inputs are concerned, it is not in dispute th....