2005 (7) TMI 457 - AT - Central Excise

Refund claim - Goods cleared claiming exemption under Notification Nos. 64/95-C.E. and 10/97-C.E

Summary

Issues:
Refund claim rejection under Notifications No. 64/95-C.E. and 10/97-C.E.

Analysis:
The appeal was filed against the order-in-appeal affirming the rejection of a refund claim of Rs. 1,72,305/- by the Commissioner (Appeals). The appellants, engaged in manufacturing excisable goods, cleared goods under three invoices without payment of duty, claiming exemption under specific notifications. They later sought a refund, contending that the goods were not exempt or subject to nil rate of duty. The adjudicating authority and Commissioner (Appeals) rejected this claim.

The appellants debited 8% of the value of cleared goods under the mentioned notifications due to availing Cenvat credit on inputs. The Tribunal held that since the appellants claimed exemption and debited the amount under the notifications, they cannot now argue that the goods were not exempt or subject to nil rate of duty. The appellants failed to maintain separate accounts for exempted and dutiable goods as required by Cenvat Credit Rules, thus were not entitled to the refund. The Tribunal cited the case of Falcon Systems Pvt. Ltd. v. CCE, Chennai, stating that the observations made therein were not applicable to the current case. The Tribunal upheld the Commissioner (Appeals) order, dismissing the appeal.

In conclusion, the Tribunal found that the appellants were not entitled to the refund as they failed to comply with the Cenvat Credit Rules regarding maintaining separate accounts for exempted and dutiable goods. The Tribunal upheld the decision of the Commissioner (Appeals) to reject the refund claim, emphasizing the appellants' obligation to follow the prescribed procedures under the law.