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2016 (10) TMI 34 - AT - Central Excise100% EOU - Cenvat credit - High Speed Diesel - appellants vide Circular No. 799/32/2004 CX dated 23.09.2004 procured HSD on payment of duty and availed CENVAT Credit - appellant argued that facility of Cenvat Credit was extended to EOUs w.e.f. 06.09.2004 vide Notificaiton No. 18/2004-CE(NT) dated 06.09.2004 which amended Rule 17 of the Central Excise Rules, 2002 to enable EOUs to pay duty on clearances made to DTA by utilizing Cenvat Credit. Also Notification No. 22/2003 dated 31.03.2003 provided that specified goods when brought into an EOU from the DTA in connection with manufacture of articles, shall be exempt from the whole of the duty of excise leviable thereon. Held that:- it is found that the definition of an input given in Rule 2(k) of CENVAT Credit Rules, 2004 cannot restrict the entitlement, when they are taking CENVAT credit in terms of Notification No.22/2003 dated 31.3.2003. More so, when the decisions of the Tribunal viz., Hindustan Unilever Ltd. vs. CCE, Bhavnagar [2009 (7) TMI 605 - CESTAT, AHMEDABAD] and CCE vs. Jagmini Micro Knit Pvt. Ltd. [2008 (11) TMI 169 - CESTAT, NEW DELHI] make it clear that appellants as an EOU can claim CENVAT credit for the duty paid on HSD oil used as fuel and when they are eligible to avail the benefit of the said Notification. Therefore, the Revenue's contention that in terms of definition of input given in Rule 2(k) of CENVAT Credit Rules, 2004 the appellants are not entitled to claim CENVAT credit, cannot be accepted, when the Notification No.22/2003 dated 31.3.2003 makes an EOU entitled to claim CENVAT credit on the procurement of HSD used as fuel. - Decided in favour of appellant
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