2015 (2) TMI 1214 - AT - Central Excise

Refund claim - Rule 5 of CCR, 2004 read with N/N. 4/2006-C.E. (N.T.), dated 14-3-2006 - 100% production of final product is being exported and only the waste, which has arisen during the manufacture of the final product stands cleared domestically on payment of duty - whether refund claim on inputs allowed? - Held that - Inasmuch as the appellants entire 100% production is for export purposes, the fact that they were using some non-duty paid inputs would not have any bearing on the refund of the accumulated credit - refund allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund of accumulated Cenvat credit for exported goods.

Analysis:
The appellant, engaged in manufacturing PP woven fabrics and sacks for export, sought a refund of accumulated Cenvat credit for the period 1-1-2008 to 31-3-2008. The Assistant Commissioner calculated a refund amount based on the inputs utilized for the exported final product. The Commissioner (Appeals) overturned this decision, claiming a lack of detailed scrutiny regarding the usage of duty-paid and non-duty paid inputs. However, the appellate tribunal found that since the appellant's entire production was for export, the use of non-duty paid inputs did not impact the refund entitlement under Rule 5 of the Cenvat Credit Rules, 2004. The tribunal concluded that the original adjudicating authority's decision was correct, allowing the appeal and restoring the refund sanctioned by the Assistant Commissioner.