TMI Blog1999 (9) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... 100% EOU and the inputs received by the appellants herein to the extent of 50% of each of the duties as if the goods had been imported from abroad i.e. 50% of the customs duty plus 50% additional duty of customs and 50% of any other duty leviable on such had they been imported from abroad. 2. A question has arisen what would be the amount of Modvat credit which the appellants herein would be entitled to. For this purpose we have to look to Rule 57-A. The said Rule provides, by proviso to that rule, that credit of duty specified in respect of any goods produced or manufactured by 100% EOU and used in the manufacture of final products in any place in India shall be restricted to the extent of duty which is equal to the additional duty lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 3 of the Customs Tariff Act, 1975. Now the issue which needs clarification is whether the credit amount should be arrived at after apportioning the quantum of duty to different component namely, basic customs duty, auxiliary duty and additional duty. We observe that the notification is very clear; that we will have to find out the component of additional excise duty presuming that the goods were imported. For determining this, we find that the illustration given by the ld. Counsel for the assessee is handy. He has correctly calculated the portion which is equal to additional duty. It is nowhere laid down that the additional duty should be paid or should have been paid. We have before us only the central excise duty so in that duty we ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 97/91-C.E. For justification of this, we reproduce the reasoning of the learned lower authority in para 12 of the impugned order :- 12. The provisions governing the admissibility of Modvat credit are included in Rule 57A of the Central Excise Rules, 1944 and Notification No. 177/86-C.E. dated 1-3-1986 as amended issued under Rule 57A. Rule 57A allows credit of any duty of excise of the additional duty under Section 3 of the Customs Tariff Act, 1975. Notification No. 177/86 contains a proviso whereby credit of specified duty in respect of any input produced or manufactured in a 100% EOU used in the manufacture of final product in any place in India is restricted to the extent of duty leviable on like goods under Section 3 of the Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eate a disharmony and is therefore not conducive to the harmonious construction of the provisions of the Act. This argument I find was not brought before the CEGAT in the case of CCE, Meerut/Weston Electronics Ltd. v. Weston Electronics Ltd./CCE, Meerut [ 1997 (95) E.L.T. 624 (T) = 1997 (21) RLT 549 (T)] and the party s own case cited by the defence in support of their argument, for consideration. From an earlier case of Weston Electronics v. CCE, Delhi [1995 (76) E.L.T. 945 (T) = 1995 (7) RLT 55 (T)], I find that a reference was made to Delhi High Court regarding the construction of the said proviso of the Notification No. 177/86. It appears therefrom that in an earlier case the Tribunal had interpreted the proviso to mean that the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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