2006 (2) TMI 545 - AT - Central Excise

Summary

Issues:
Refund of unutilized Cenvat credit for exported final products.

Analysis:
The appellants were denied a refund of unutilized Cenvat credit for inputs used in final products exported under bond during a specific quarter. The lower authorities rejected the refund claim, stating that the appellants failed to prove that the credit could not be utilized and did not demonstrate that no drawback/rebate was availed for the exports. This denial was based on a previous order related to another case.

In a related case involving Pee Vee Textiles Ltd., the Tribunal had remanded the matter for a fresh decision. The Tribunal, in the present case, acknowledged the certificate provided by the Range Officer as evidence for considering the refund claim, specifically if the credit pertained to duty on inputs used in the export products during the relevant quarter.

The appellants' counsel could not confirm whether the exports were made under free shipping bills or drawback shipping bills. Due to this ambiguity, the Tribunal set aside the earlier order and remanded the case for a fresh adjudication. The appellants may be granted the refund of unutilized credit after verifying that the credit is linked to duty on inputs used in the export products and ensuring that no drawback/rebate was claimed for those exports.

Conclusively, the appeal was allowed by way of remand, indicating a favorable outcome for the appellants pending the verification process.