TMI Blog2009 (3) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... at the entire credit was taken on records on the basis of the invoices issued by M/s. Reliance Industries Ltd. and there was no mala fide on their part. The issue involved is of a legal interpretation of the provisions of Rule 3(7) and as such the imposition of penalty upon them was not justifiable. I agree with the above submissions of the appellant. The issue being of technical nature involving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y M/s. Reliance Industries Ltd. on payment of countervailing duty, Education Cess on countervailing duty, Education Cess on Cenvat and Senior and Higher Education Cess on Cenvat. 2. In terms of the provisions of sub rule (7) of Rule 3 of Cenvat Credit Rules where the inputs stand procured by a 100% EOU and used in the manufacture of the final product by a DTA unit, a formula for availing credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the said factor 'X' would include value plus basic customs duty. As such they would be entitled to higher Modvat credit. 4. Though the said plea of the appellant stands discussed at length by both the lower authorities and stands rejected on justifiable grounds, I find that the appeal can be disposed off by applying the simple mathematical formula for opening of the above equation. For be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire credit was taken on records on the basis of the invoices issued by M/s. Reliance Industries Ltd. and there was no mala fide on their part. The issue involved is of a legal interpretation of the provisions of Rule 3(7) and as such the imposition of penalty upon them was not justifiable. I agree with the above submissions of the appellant. The issue being of technical nature involving in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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