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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2012 (6) TMI AT This

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2012 (6) TMI 753 - AT - Central Excise


Issues:
Claim for input duty credit on exported goods.

Analysis:
The appellants exported 'Multi Folded Cotton Yarn' and claimed input duty credit for packing material, which was denied by the department. The department argued that the exported material is duty-free, following the government's policy not to burden export goods with domestic taxes. The Tribunal noted that various decisions support this policy to maintain competitiveness in the foreign market and avoid exporting domestic taxes. The Tribunal highlighted that countries typically exempt such taxes on export goods or provide rebate schemes. India follows similar practices, including duty-free goods for export production. Allowing input duty credit would relieve export goods from domestic taxes. Consequently, the impugned order was set aside, and the appeal was allowed, with the stay petition also disposed of.

The amount involved in the case was Rs. 19,713. The appellants requested an early hearing of the appeal but also sought an adjournment because their authorized representative from Mumbai needed to argue the case, despite the small amount. The Tribunal, considering the issue straightforward, declined the adjournment request, waived the pre-deposit requirement, allowed the miscellaneous application for early hearing, and proceeded to hear and dispose of the appeal on the same day.

In conclusion, the Tribunal's decision favored the appellants by allowing input duty credit on the exported goods. The judgment emphasized the importance of not burdening export goods with domestic taxes to maintain competitiveness in the global market. The decision highlighted the government's policy and various schemes in place to support export production by exempting or providing rebates on domestic taxes for export goods. The judgment set aside the department's denial of input duty credit, allowing the appeal and disposing of the stay petition.

 

 

 

 

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