TMI Blog2005 (7) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant and Shri R.V. Ramakrishnappa, learned JDR appeared on behalf of the Revenue. 3.The brief facts of the case are as follows :- The Respondent received Mica paper from M/s. Mica Trading Corporation Ltd., a 100% E.O.U. The applicant took Modvat credit of the entire duty paid by M/s. Mica Trading Corporation Ltd. A show cause notice was issued to them for disallowing the credit taken. The reason given in the show cause notice is that under Rule 57A of the Central Excise Rules, 1944, any duty of excise or additional duty of Customs under Section 3 of the Customs Tariff Act is specified duty for availing Modvat credit. Since the effective rate of duty of Mica paper is Nil, the additional duty of the Customs is also Nil. The duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit. The Commissioner (Appeals) rejected the Revenue s appeal on the ground that the nature of the duty on the goods cleared by 100% E.O.U. is excise duty even though it consists of different components of customs duty as per proviso to Section 3 of the Central Excise Act, 1944. As the Revenue was aggrieved over the decision of the Commissioner (Appeals), the appeal was filed before this Tribunal. The Tribunal in its Final Order No. 311/2004, dated 6-2-2004 allowed the Revenue s appeal relying on the decision of the Larger Bench of the Tribunal in the case of Vikram Ispat v. Commissioner of Central Excise, Mumbai [2000 (120) E.L.T. 800 (Tribunal - L.B.)]. Against the Tribunal s Final Order No. 311/2004, dated 6-2-2004, the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit available in respect of goods procured from 100% E.O.U. is clearly given. In the Final Order, this Bench has extracted Para 17 of Vikram Ispat decision and has come to the conclusion that in this case the quantum of Modvat credit available is Nil. The Final Order never says that the nature of duty paid on goods cleared to DTA is customs duty and not excise duty. On that point there is no dispute on the Modvat credit available is restricted in view of the Notification No. 177/86 as amended. The respondent in his application does not speak of the restriction at all. We also reiterate that the duty paid on goods cleared from 100% E.O.U. to DTA is excise and excise duty only. But the entire excise duty paid is not available in ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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