2007 (8) TMI 537 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of refund claim u/s Rule 5 of Cenvat Credit Rules, 2002 for duty paid on inputs used in manufacture of final products cleared for deemed export.

Summary:
1. The appeal was filed by Revenue against the Order-in-appeal rejecting the refund claim of Rs. 2,67,247/- by the adjudicating authority. The Commissioner (Appeals) allowed the refund claim stating that supplies from DTA units to SEZ units will be considered as exports by the DTA units, leading to the appeal by Revenue.

2. The Revenue argued that the Commissioner (Appeals) erred by relying on Circular No. 68/2003-Customs dated 30-7-2003, which clarified that provisions related to Special Economic Zones came into force from 11-5-2004, while the case pertained to goods cleared in October and November 2003.

3. The respondent's advocate supported the Commissioner (Appeals) findings and cited the Board circular dated 30-7-2003 along with a Tribunal decision in Amitex Silk Mills Pvt. Ltd. v. CCE, Surat-I - 2006 (194) E.L.T. 344 (Tri.-Del).

4. Upon review, it was noted that there was no dispute regarding the use of inputs in manufacturing final products or the clearance of goods to SEZ units. The Commissioner (Appeals) allowed the refund claim based on the Board's circular dated 30-7-2003. Citing the Tribunal's decision in Amitex Silk Mills Pvt. Ltd., it was concluded that deemed exports should be treated as exports for all purposes.

5. Consequently, following the Tribunal's decision in Amitex Silk Mills Pvt. Ltd., the order of the Commissioner (Appeals) was upheld, and the Revenue's appeal was rejected.