2010 (6) TMI 354 - AT - Central Excise

Refund of Cenvat credit - input purchased without payment of duty for the purpose of export - cleared part of input for home consumption in the domestic market on payment of duty under Notification No. 30/2004-C.E - Held that - goods obtained duty-free for export purposes has not been exported - duty has been paid under Notification No. 30/2004-C.E. and the said notification has a condition that Cenvat credit on input duty should not be taken the question of refunding any amount towards such credit cannot arise - appeal is dismissed

Summary

Issues: Claim for refund of duty amount and Cenvat credit rejection

In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the appellant had obtained viscose staple fibre duty-free for export under Notification No. 43/2001-C.E. (N.T.), but only a portion was utilized for export, with the rest cleared for home consumption on payment of duty under Notification No. 30/2004-C.E. The appellant's claims for refund of the duty amount and Cenvat credit on inputs used in the staple fibre were rejected by the authorities below. The appellant's counsel reiterated the claims, while the Department's representative supported the lower appellate authority's decision to reject the claims.

The tribunal noted that duty-free goods meant for export but not exported are liable for duty payment, precluding any refund claim on the amount due. Additionally, regarding the Cenvat credit on input duty, the tribunal upheld the Department's stance that as per Notification No. 30/2004-C.E., which was applicable for the duty paid, no refund for the credit could be granted. Consequently, the tribunal found no grounds to overturn the decisions of the lower authorities and dismissed the appeal. The judgment was dictated and pronounced in open court by Dr. Chittaranjan Satapathy, Member (T).