2010 (3) TMI 989 - Commissioner - Central Excise

Summary

Issues:
- Appeal against rejection of refund claims on the ground of NCCD utilization and export clearance.
- Interpretation of Cenvat Credit Rules, 2004 regarding refund eligibility.
- Applicability of CBEC Circular No. 701/17/2003-CX on refund claims.
- Comparison with previous judgments on similar refund issues.

Analysis:
1. Rejection of Refund Claims: The appellant, engaged in manufacturing yarns and fabrics, filed refund claims for unutilized Cenvat credit of NCCD paid on inputs. The claims were rejected based on the grounds that NCCD utilization was restricted, and accumulation for refund under Rule 5 of Cenvat Credit Rules, 2004 was not applicable for goods cleared for export under rebate. The appellant argued that their exported products did not attract NCCD, and hence, refund under Rule 5 should be allowed.

2. CBEC Circular and Legal Interpretation: The appellant relied on CBEC Circular No. 701/17/2003-CX, emphasizing the admissibility of refund of unutilized credit under Rule 5. The appellant cited various judgments, asserting that the refund of NCCD under Rule 5 is permissible, especially when goods exported do not attract NCCD. The Tribunal's decision in similar cases supported the appellant's claim for refund under Rule 5.

3. Comparison with Previous Judgments: The Commissioner analyzed earlier judgments involving refund issues related to AED (GSI) and AED (T&TA), which were similar to the NCCD refund claim in question. The Commissioner concluded that under similar circumstances, refund of NCCD, like AED (T&TA), should be allowed. Citing precedents and legal interpretations, the Commissioner held that the appellant was entitled to the refund of NCCD.

4. Final Decision: After reviewing the case records, submissions, and relevant legal provisions, the Commissioner allowed the appeal, setting aside the Deputy Commissioner's order that rejected the refund claims totaling Rs. 6,08,319. The decision was based on the interpretation of Cenvat Credit Rules, the applicability of CBEC Circular, and alignment with previous judicial pronouncements on similar refund issues.