2018 (3) TMI 1780 - AT - Central Excise

CENVAT Credit - inputs - export of goods - HELD THAT - It appears that appellant has manufactured only two items and two items were bought from the open market and by putting all the four items in a box (gift box) the same was exported. When export has been made and rebate has been claimed, in this situation the appellant is not entitled for double benefit as per section 2(k) of the Cenvat Credit Rules, 2004 - appeal dismissed - decided against appellant.

Summary

Issues:
Appeal against Order-in-Appeal No.34/KolI/2011 and Order-in-Appeal No.22/Kol-I/2012 passed by Commissioner of Central Excise (Appeal –I), Kolkata regarding claiming of cenvat credit for exported goods.

Analysis:
The appellant, involved in exporting 'Gift Box' products, filed an appeal against the disallowance of cenvat credit by lower authorities. The gift box contained two items manufactured by the appellant and two items purchased from the open market. The appellant claimed rebate for exporting the gift box. The appellant argued that unlike previous cases where no rebate was claimed, in their case, they were enjoying rebate for exporting the goods. However, the Tribunal noted that as per the Cenvat Credit Rules, 2004, when export is made and rebate is claimed, the appellant cannot avail double benefit. The Tribunal found no reason to interfere with the lower authorities' decision and dismissed the appeals filed by the appellant.

This judgment highlights the importance of adhering to the provisions of the Cenvat Credit Rules, 2004, particularly in cases involving the claiming of rebate for exported goods. It emphasizes that when an export is made and rebate is claimed, the entity cannot seek double benefits, as outlined in section 2(k) of the Cenvat Credit Rules, 2004. The Tribunal's decision underscores the need for consistency in the application of rules and regulations governing cenvat credit and export-related benefits to prevent any potential misuse or double-dipping of benefits by entities engaged in export activities.

In conclusion, the Tribunal upheld the lower authorities' decision to disallow the cenvat credit claimed by the appellant for exporting the gift box products. The judgment serves as a reminder for entities engaged in export activities to carefully adhere to the relevant rules and regulations governing cenvat credit and rebate claims to avoid any potential penalties or disallowances. The dismissal of the appeals by the Tribunal underscores the importance of compliance with regulatory requirements to maintain the integrity and fairness of export-related benefit schemes.