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2012 (11) TMI 767 - CESTAT, BANGALORE100% Export Oriented Unit – utilization of cenvat credit - Some quantities of imported duty free inputs and indigenously procured inputs have been cleared as such to DTA without using them for manufacture of final products in the E.O.U. – Held that:- Rule 17 of the Central Excise Rules referred to excisable goods manufactured by 100% E.O.U. and the same cannot apply to inputs cleared as such and that too for inputs imported and cleared as such - CENVAT credit cannot be utilized for paying Customs duty on imported goods and paying Excise duty on inputs which are cleared as such when such inputs were procured without payment of duty and therefore without credit being taken on such inputs. Rule 3(4) of the CENVAT Credit Rules specifically refers to the purpose for which the CENVAT credit by an assessee can be utilized. The claim on behalf of the appellant that the inputs cleared by them as such should be treated as on par with final products on the ground that they are required to pay duty on them is also, prima facie, not acceptable. The CENVAT Credit Rules clearly distinguish items like “inputs”, “capital goods” and “final products”. There appears no scope for entertaining a belief that inputs cleared as such by the manufacturer-assessee could be treated as clearances of final products. - prima facie against assessee - pre deposit of Rs. one crore only ordered.
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