2015 (6) TMI 1162 - AT - Central Excise

Refund of accumulated CENVAT Credit - Rule 5 of CENVAT Credit Rules 2004 - Revenue entertained a view that since the final product of the appellant is exempted, they are not entitled to the refund of the unutilized credit - Held that - The issue is no more res integra and stands settled by the Hon ble Bombay High Court s decision in the case of Repro India Ltd Vs UOI 2007 (12) TMI 209 - BOMBAY HIGH COURT , where it was held that in such case where goods are exported, direction by revenue to the petitioner to pay 10% of sale price of exempted goods u/r 6(3)(b) is not justified - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
1. Entitlement to refund of CENVAT credit for fully exported battery-operated electric cars under Rule 5 of CENVAT Credit Rules 2004.

Analysis:
The appellant, engaged in manufacturing battery-operated electric cars classified under Chapter 85 of the Central Excise Tariff Act 1985, fully exports the final products. The central issue is the entitlement to a refund of the accumulated CENVAT credit under Rule 5 of the CENVAT Credit Rules 2004. The Revenue contends that since the final product is exempted, the appellant is not eligible for the refund of unutilized credit, leading to the rejection of their refund application.

The Judicial Member, referring to the settled legal position, relies on the decision of the Hon'ble Bombay High Court in Repro India Ltd Vs UOI [2009(235)ELT614(Bombay)]. This decision has been consistently followed by the Tribunal in various cases, such as CCE Vs Gujarat Ambuja Exports Ltd [2014 (311) ELT 718 (Tri Ahmd)]. The Judicial Member also discusses the case law on the subject, including the decision of the Hon'ble High Court in CCE Vs Drish Shoes Ltd [2010 (254) ELT 417 (H.P.)]. Given the established legal precedent, the Judicial Member sets aside the impugned order and allows all four appeals, ruling in favor of the appellant.

In conclusion, the judgment clarifies the entitlement of the appellant to claim a refund of the CENVAT credit accumulated in their accounts for the fully exported battery-operated electric cars, in accordance with Rule 5 of the CENVAT Credit Rules 2004. The decision is based on the settled legal position established by previous court rulings and Tribunal decisions, ensuring consistency and adherence to legal principles.