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2008 (8) TMI 334 - AT - Central ExciseCenvat Credit – goods supplied from 100% EOU to EHTP unit – CT 3 procedure under notification no. 22/2003 dated 31-3-2003 – Held that - Rule 3(4) is to recover the amount equal to the credit availed by a manufacturer, when he removes the capital goods from his factory. Rule 3(5) also makes it clear that the amount paid under sub-rule (4) of Rule 3, is available as Cenvat credit as if it was a duty paid. Both sub-rules read together make it obvious that if the appellants reversed the credit, the 100% EOU would have been eligible to take a credit in respect of capital goods. However, the cited Notification No. 22/03-C.E. subsequently allows a 100% EOU to procure capital goods without payment of duty against CT-3 Certificate. Since a reading of both the sub-rules together makes it clear that what is sought to be reversed is in the nature of duty and the same duty is exempted under the Notification for specific cases, such as supply to 100% EOU – Since the goods had been removed only after considerable use the same can not be held as removal as such – demand is not sustainable
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