Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 609 - AT - Central ExciseCENVAT credit - inputs procured by the appellants from an EHTP unit - Department was of the view that the appellant is not eligible to take 100% of the CENVAT credit of duty paid on inputs and instead they are eligible to avail only 50% as provided under Sub Rule 7 of Rule 3 of CCR, 2004 - Held that: - the EHTP unit has not paid duty by availing the exemption under Sl.No.2 of the N/N .23/2003. The primary purpose and scope of CENVAT Credit scheme is to neutralize the cascading effect of duty portion on inputs suffered by the manufacturer. It is not disputed that appellant was borne the full quantum of duty amount passed on to him by the EHTP unit - when the EHTP has paid duty the appellant is eligible to avail credit of the entire duty paid on the goods. The department cannot restrict the credit availed to 50% when the EHTP has not applied the notification for the purpose of paying duty - appeal allowed - decided in favor of appellant.
|