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2013 (9) TMI 209 - AT - Central ExcisePayment of duty by 100% EOU - Interpretation and Calculation of the Formula - Availment of CENVAT credit - Appellant was engaged in the manufacture of P.P. woven bags - Revenue was of the view that on the ground that appellant had availed Cenvat credit wrongly during the Period - The dispute was the interpretation of the formula and the manner in which calculations have to be made - Held that:- The claim was correct - The claim of the appellant that excepting the above two items under the head of Education Cess the remaining amounts were held admissible as per the calculations made in respect of the sample invoice - What was required to be done for the purpose of calculating duty payable by a 100% EOU was to calculate the customs duty payable (by calculating 25% of the normal rate as per the exemption notification), add CVD and thereafter treat the amount as excise duty and pay Cess on the same which would be the Cess payable on central excise duty worked out as per the formula. While the conclusion drawn by the Commissioner was correct, the error had been committed in identifying the Cess paid on customs duty - in the case the amount being Education Cess and SHE Cess are the Cess paid on customs duty worked out for the purpose of calculating the total customs duty payable to arrive at the excise duty payable by the assessee as per the formula - appellant had not taken the credit being the Education Cess on customs duty – Decided in favour of Assessee.
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