2009 (7) TMI 981 - AT - Central Excise

Summary

Issues involved: Appeal against the order passed by Commissioner (Appeals) allowing the appeal filed by the Respondent regarding the refund of NCCD paid on raw material for manufacturing polyester textured yarn.

Summary:
1. The Revenue filed an appeal against the Commissioner (Appeals) order, which was set aside by the High Court due to lack of reasoning in the Tribunal's order.

2. The matter was listed again, and both sides were heard. The dispute revolved around the denial of refund of NCCD paid on raw material for manufacturing polyester textured yarn.

3. The appellants had manufactured and exported polyester textured yarn under bond, and the dispute was regarding the NCCD paid on raw material. The original adjudicating authority denied the refund, stating that no NCCD was leviable on the final product from a certain date.

4. The Commissioner (Appeals) ruled in favor of the respondent, citing a clarificatory circular allowing the refund of AED (GSI) based on the eligibility to take credit under Cenvat Credit Rules, 2004.

5. The Commissioner (Appeals) referenced a previous Tribunal decision in the same assessee's case, which had allowed the refund of NCCD paid on the input. The issue had also been rejected by the Mumbai High Court, indicating finality.

6. Consequently, the present appeal filed by the Revenue was rejected, affirming the decision in favor of the respondent.

*(Pronounced in Court)*