HYUNDAI MOTOR INDIA LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants had received halogen lamps from M/s. Phoenix Lamps India Ltd., Noida, a 100% EOU, and had taken CENVAT credit of the entire amount of duty paid thereon. The original authority and the first appellate authority restricted their entitlement to an amount equal to the additional duty of customs [CVD] which formed a part of the measure of the duty of excise paid by the EOU in terms of Notification No. 2/95 -CE dated 4.1.1995. In other words, the authorities assumed that the amount of duty paid on the halogen lamps by the EOU was a conglomeration of duties of customs. They did not realize that it was a duty of excise which was collected on the basis of duties of customs in terms of Notification No. 2/95 -CE ibid read with the proviso to Section 3(1) of the Central Excise Act. It is submitted by learned Counsel for the appellants that the issue is covered by decisions of this Tribunal such as the following:

(2.) IT is settled position of law that the duty paid by a 100% EOU on goods cleared to Domestic Tariff Area (DTA) is a duty of excise. The buyer of such goods is entitled to MODVAT/CENVAT credit of that duty. This is precisely the benefit taken by the appellants. As rightly pointed out by learned Counsel, the issue is covered by the Tribunal's decision in the case of India Japan Lighting Ltd. (supra), in favour of the appellants. In the result, the impugned order is set aside and this appeal is allowed.