TMI Blog2017 (5) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... in law. Penalty - Held that: - the availment of ineligible credit had arisen from apparent confusion about the nature and composition of the levy - availment does not appear to have been motivated by intent to evade duties - penalty set aside. Appeal allowed - decided partly in favor of appellant. - E/87791/2013 - A/87039/17/SMB - Dated:- 24-4-2017 - Shri C J Mathew, Member (Technical) Shri Mehul Jivani, Advocate for the appellant Shri N N Prabhudesai, Superintendent (AR) for the respondent ORDER Appeal of M/s Encore Healthcare Pvt Ltd challenges order-in-appeal no. AV (111) 96/2013 dated 18 th April 2013 of Commissioner of Central Excise Customs (Appeals), Aurangabad which sustained the order of the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligibility for CENVAT credit is limited to the central excise duties and cess thereof. 3. The scheme of levy of duty on goods cleared by 100 % Export Oriented Unit envisages the computation of duty equivalent to duties of customs as though the same goods had been imported into India. The duty liability comprises the basic customs duty, the additional duties of customs (equivalent excise duty) and such other cess that is leviable. 4. The scheme of CENVAT credit is intended to ensure that the cascading effects of taxation on goods/services was not visited upon the transaction value at which the goods are transferred in the channels of commerce. Consequently, such duties as pertain to the process of manufacture upto, and including the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in Vikram Ispat v. Commissioner of Central Excise, Mumbai-III [2000 (120) ELT 800 (Tribunal-LB)] and Kumar Arch Tech Pvt Ltd v. Commissioner of Central Excise, Jaipur-II [2013 (290) ELT 372 (Tri-LB)] . It is seen that the decision in re Vikram Ispat was rendered in the context of pre-amended rule 3(7) of CENVAT Credit Rules, 2004 and the other two were rendered in disputes relating to levy of cess. 7. Rule 3 of CENVAT Credit Rules, 2004 specifically lists the duties that can be availed as credit. Though the aggregate of duties of customs is collected as an amorphous duty of excise, the specific reference to the Central Excise Tariff Act, 1985 in the rule excludes the availment of the totality of excise duty paid by Export Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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