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2012 (11) TMI 244 - AT - Central ExciseCENVAT credit on Special Additional Duty of Customs - Held that:- The object and purpose of levy of special additional duty under section 3(5) of the Customs Tariff Act was to provide a level playing field for domestic units. That objective will be completely negative, if the said duty is not available as credit for procurement from EOUs vis-à-vis imports. The Cenvat Credit scheme is not intended to create distortions in the market place and the law also should not be interpreted in such a way so as to create a distortion. Under sub-section (1), an additional duty of customs is levied which is equal to the excise duty levied on like articles produced in India. Under sub-section (5), another additional duty of customs is levied at a rate not exceeding four per cent of the value of the imported article so as to counterbalance the sales tax/value added tax or any other charges on a like article on its sale, purchase or transportation in India. Both the levies are “additional duty of customs” and therefore, there is no warrant to restrict the scope of the term additional duty of customs occurring in the formula to only the additional duty leviable under sub-section (1) of section 3 and not to the additional duty leviable under sub section (5) thereof - in favour of assessee.
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