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2014 (11) TMI 30 - AT - Central ExciseCENVAT Credit - Whether appellant is eligible to take CENVAT credit under Rule 3(1) of the Cenvat Credit Rules, 2004 for the entire duty paid by a 100% EOU under proviso to Section 3(1) of the Central Excise Act, 1944 - Held that:- If the view put forth by the Revenue is accepted than under proviso to Section 3(1) no duty more than the duty of excise leviable under the First Schedule to Central Excise Act can be recovered from a 100% EOU. Revenue can take not one stand while recovering duties and take another stand once it comes to taking of CENVAT credit. It is, therefore, a logical conclusion that the sum total of duties paid by a 100% EOU represents Central Excise duty chargeable as per Section 3(1) of the Central Excise Act, 1944. In the invoices the entire duty has been shown as excise duty paid under proviso to Section 3(1) of the Central Excise Act, 1944. This proviso is existing in Section 3 right from 01.3.1982. Duty indicated on the invoices show the same to be Central Excise duty though the method used for calculating the ‘measure’ of such excise duty also include elements of customs duties. Therefore, the entire duty paid on the invoices will have to be considered as Central Excise duty paid under Section 3(1) of the Central Excise Act, 1944. It is not the case of the Revenue in these proceedings that CENVAT credit of the excise duty paid by the 100% EOU was required to be reduced under any other provisions of the Cenvat Credit Rules, 2004 - Decided in favour of assessee.
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