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2017 (2) TMI 301 - AT - Central ExciseCENVAT credit - duty paid by 100% EOU under N/N. 2/95-CE dt. 4.1.1995 - The differential cenvat credit between the CVD & total duty was denied by the adjudicating authority interpreting the restriction provided under Rule 57AB (2) of the Central Excise Rules, 1944. Held that: - whatever duty was paid by EOU is available as credit. Subject to restriction upto the additional duty of Customs leviable on the like goods if imported into India. That means in a normal course, if the goods are imported into India then whatever CVD is payable the credit of duty paid by EOU shall be restricted to that CVD. Therefore, the contention of the Revenue is absolutely incorrect that the credit only in respect of CVD paid by the EOU is available. The CVD payable in case of import is ₹ 20/-whereas the total duty paid by EOU is ₹ 25.40/-but the Cenvat credit will be admissible to the extent of ₹ 20/-. In view of above, neither the respondent s claim is correct nor is of the department. However, from the above calculation it can be seen that the total duty paid by the EOU is not available as a credit to the respondent, therefore it needs to be re-quantified and credit will be restricted to the CVD payable on the like goods as if imported into India. Appeal allowed by way of remand.
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