TMI Blog2019 (7) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... e as the clearance of the excisable goods was made by the Appellant/Assessee not for Home Consumption but, for export wheres Chapter V-A apply only if the clearance of excisable goods is made for Home Consumption. The learned counsel for the Appellant/Assessee contended that the Appellant/Assessee has a got a separate manufacturing unit from which the goods are cleared for Home Consumption or for sale within India, whereas from the 100% EOU in question, no such clearance is made for Home Consumption and therefore, Rule 57Q does not stand in the way as per Rule 100H under Chapter V-A of the Act Central Excise Rules, 1944. Matter remitted back to the learned CESTAT for fresh consideration of this aspect - appeal allowed by way of remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 100-H as it stood during the relevant period, provides that the provisions of Rule 57Q would not apply to excisable goods produced or manufactured by a 100% EOU. Rule 57Q of the erstwhile Rules is for eligibility for MODVAT credit and Rule 57T is for filing of declaration. Rule 57R provides that no MODVAT credit shall be allowed on capital goods, which are used exclusively in the manufacture of exempted final products except the final product is removed to a 100% EOU. Thus, there is no provision for availing credit by 100% EOU. In the case of GTN Exports (supra) it was held that restriction of utilisation of credit by a 100% EOU was lifted by Notification No.18/2004-CE(NT) dated 6.9.2004 and CBEC Circular No.799/32/2004-Cx dated 23.9.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not apply to excisable goods produced or manufactured by a hundred per cent export-oriented undertaking. 4. The learned counsel for the Appellant further submitted that Chapter V-A itself only applies to the 100% EOU of Excisable Goods that are made for Home Consumption, but, the Assessee in the present case made clearance of the final goods not for consumption in India but, for exporting such final products to the countries other than India. Therefore, the MODVAT Credit in respect of duty paid by him on the purchase of capital goods deserves to be allowed to the Appellant Assessee under Rule 57Q of the Central Excise Rules, 1944 and this aspect of the matter has not been considered by the learned Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d all facilities and privileges admissible as envisaged in Export/import Policy 1997-2002, on 28.7.99 itself, even before obtaining Central Excise L-4 Licence. Apart from the above, in terms of clause (2) of Rule 100-H the provisions contained in Rule 57Q shall not apply to excisable goods produced or manufactured by a 100% EOU. In other words, you are not eligible to apply the provisions of Section AAAA to Chapter V of the Central Excise Rules 1944. Since Rule 57R is covered under the above mentioned section AAAA of Chapter V of Central Excise Rules 1944, you are not eligible to apply the said provision of Rule 57R(1). Therefore it has not been found permissible to accede to your request to allow modvat credit on Capital Goods purchased by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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