MARUTI UDYOG LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in. this appeal, filed by M/s. Maruti Udyog Ltd., is whether they have availed the Modvat/CENVAT Credit in excess of the amount representing additional duty of excise paid by the supplier of the inputs.

(2.) WE heard Shri A.R. Madhav Rao, learned Advocate for the Appellants, and Shri D.N. Chaudhary, learned DR, for the Revenue. The learned Advocate submitted that the appellants manufacture motor vehicles and avail Modvat/Cenvat Credit of the duty paid on the inputs; that they buy Head Lamp bulbs from M/s. Phoenix Lamps (India) Ltd., a 100% Export Oriented Undertaking which pays who Excise duty equivalent to aggregate of 50% of each of the duties of Customs leviable on like goods imported into India; that the Commissioner, under the impugned Order, has disallowed the Modvat/CENVAT Credit and ordered its recovery besides imposing penalty and interest holding that the Appellants are entitled to take Credit only to the extent of the component of additional duty of Customs which forms the part of Excise duty paid by 100% EOU. The learned Advocate, further, submitted that the issue involved has been settled by the Larger Bench of the Tribunal in the case of Vikram Ispat v. CCE, Bombay -Ill , that the Commissioner, however, has mentioned in the impugned Order that the facts and circumstances of the said decision are different from the facts of the present matter; that this finding of the Commissioner is not correct as the issue involved in Vikram. Ispat, decided by the Larger Bench of the Tribunal, is precisely the same issue involved in the present matter as to what extent the assessee would be entitled to Modvat Credit in respect of inputs purchased from 100% EOU; that when such is the situation and when the facts and circumstances are identical it is not open to the Adjudicating Authority to say that the facts and circumstances are different.

(3.) AFTER considering the submissions of both the sides we observe that the issue involved is no more res integra as the issue involved stands decided. by the Larger Bench of the Tribunal in the case of Vikram Ispat (supra) wherein it has been held as under: