TMI Blog2017 (10) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... nit - 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. - E/124/2009 - 41764/2017 - Dated:- 17-8-2017 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. Rukmani Menon, Advocate, for the appellants Shri S. Govindarajan, AC (AR), for the Respondent. ORDER Per Bench The issue involved is the availment of Cenvat credit on inputs procured by the appellants from an EHTP unit during the period from December 2005 to January 2006. 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty levied under section 3 of the Excise Act read with serial numbers 3, 5, 6 and 7 of Notification No.23/2003-Central Excise, dated the 31 st March, 2003 [G.S.R. 266(E), dated the 31 st March, 2003] and used in the manufacture of the final products or in providing an output service, in any other place in India, in case the unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the Notification No.23/2003-Central Excise, dated the 31 st March, 2003 [G.S.R. 266(E), dated the 31 st March, 2003], shall be admissible equivalent to the amount calculated in the following manner, namely :- Fifty per cent. of [X multiplied by {(1+BCD/100) multiplied by (CVD/100)}], where BCD and CVD denote ad valorem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the manufacturer. It is not disputed that appellant was borne the full quantum of duty amount passed on to him by the EHTP unit. In such a case, 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. The said proposition is discussed in the decision in the case of Molex (India) Pvt. Ltd. (supra) relied by the Ld. Counsel for the appellants. 6. From the above discussions, we find that the demand is unsustainable. The impugned order is set aside and the appeal is allowed with consequential relief. (Order pronounced in the open Court) - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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