9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 89 - AT - Central ExciseDenial of refund claim u/r 5 of Cenvat Credit Rules, 2004 - De-oiled cake of Soyabean falling under Chapter 15 of Central Excise Tariff Act, 1985 attracting Nil rate of duty - product cleared for export under bond - whether the denial of refund on the ground that De-oiled cake of Soyabean attracts nil rate of duty, is justified? - Held that - I find that the aforesaid issue has been settled by the decision of Hon ble High Court of Himachal Pradesh in the case of CCE vs. Drish Shoes Limited 2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT , where it was held that According to Rule 5 of CENVAT Credit Rules, 2004 that a manufacturer, who exports the final products which are exempt from duty, can claim refund of CENVAT. I do not find any discrepancy in the allowance of refund claim - Accordingly, the same is upheld - appeal dismissed - decided against Revenue.
Issues:
1. Eligibility for cash refund of accumulated credit under Rule 5 of Cenvat Credit Rules for export of final products attracting nil rate of duty. 2. Interpretation of Rule 6(5) and Rule 6(6) of Cenvat Credit Rules regarding availability of CENVAT credit on inputs used in manufacturing goods chargeable to nil duty. 3. Applicability of Cenvat credit in respect of input services used in providing taxable services exempted by notification but exported. 4. Availability of input duty Cenvat credit in cases where final products are fully exempt from duty by exemption notification. Issue 1: The appeal addressed the eligibility of the appellant for cash refund of accumulated credit under Rule 5 of Cenvat Credit Rules for export of final products attracting nil rate of duty. The Revenue contended that since the final product was exempted, the appellant was not entitled to avail credit on the inputs. However, the appellant relied on the judgment of the Hon'ble High Court of Himachal Pradesh in a specific case, arguing that they were eligible for the credit. The Tribunal, following the precedent, held that an assessee manufacturing goods chargeable to nil duty is indeed eligible to avail CENVAT credit on inputs used in the manufacture of such goods for export. The appeal was dismissed based on this interpretation. Issue 2: The judgment delved into the interpretation of Rule 6(5) and Rule 6(6) of Cenvat Credit Rules regarding the availability of CENVAT credit on inputs used in manufacturing goods chargeable to nil duty. The Tribunal referred to the decision of the Division Bench of the Bombay High Court and held that the term "excisable goods" in Rule 6(6) of 2004 Rules includes both dutiable and exempted goods. Therefore, an assessee manufacturing goods chargeable to nil duty is eligible to avail CENVAT credit on inputs used in the manufacture of such goods for export, as per the exception clause to Rule 6(1). This interpretation was crucial in determining the eligibility for CENVAT credit in such scenarios. Issue 3: The judgment also discussed the applicability of Cenvat credit in respect of input services used in providing taxable services exempted by notification but exported. The Tribunal cited various cases where it was held that if a taxable service, although exempt by notification, is exported, the assessee is entitled to take Cenvat input credit under Rule 5 of the Cenvat Credit Rules, 2004. The Tribunal's decision was supported by previous judgments and established that the credit could be utilized for payment of service tax on taxable services provided to domestic clients, or if unused, could be refunded in cash. Issue 4: Lastly, the judgment addressed the availability of input duty Cenvat credit in cases where final products are fully exempt from duty by exemption notification. The Tribunal referred to judgments by the Hon'ble Bombay High Court and the Hon'ble High Court of Himachal Pradesh, emphasizing that in such cases, input duty Cenvat credit would be admissible to the manufacturer/exporter under Rule 5 of the Cenvat Credit Rules, 2004. This credit could be utilized for payment of duty on goods cleared for home consumption or refunded in cash if not utilized, irrespective of the duty exemption on the final products exported. The Tribunal upheld the applicability of Cenvat credit in these circumstances based on the established legal principles. In conclusion, the judgment provided detailed analyses and interpretations of various provisions of the Cenvat Credit Rules, establishing the eligibility for CENVAT credit in specific scenarios involving goods chargeable to nil duty, exempted final products, and exported taxable services. The Tribunal's decisions were supported by relevant legal precedents, ensuring consistency and clarity in the application of Cenvat credit rules.
|
