2018 (3) TMI 837 - AT - Central Excise

CENVAT credit - export of exempted goods - common inputs and input services and manufactured dutiable as well as exempted goods - Held that - The ratio of the judgement of the Hon ble High Court of Bombay in the case of Repro India Ltd., 2007 (12) TMI 209 - BOMBAY HIGH COURT would squarely covered in their favor of assessee, 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. If the exempted products are exported outside India the provisions of Rule 6(6)(v) of CCR are applicable. Demand set aside - appeal allowed - decided in favor of assessee.

Summary

Issues:
Appeal against Orders-in-Original, Availing CENVAT credit on common inputs and input services for manufacturing dutiable and exempted goods, Export of exempted goods under bond, Confirmation of demands raised on inputs consumed for manufacturing exempted goods.

Analysis:
The judgment pertains to three appeals directed against Orders-in-Original issued on specific dates. Two appeals are filed by the appellant assessee and Revenue against the same Order-in-Original, while the third appeal is against a different Order-in-Original. The common issue in all appeals is addressed through a single order. The main issue under consideration is the availing of CENVAT credit by the appellant on common inputs and input services for manufacturing both dutiable and exempted goods, with the exempted goods being exported under bond.

Upon reviewing the records and hearing both sides, the Tribunal notes that the Adjudicating Authority did not confirm the demands raised on inputs consumed for manufacturing the exempted goods that were exported. The Tribunal acknowledges the argument presented by the Learned Counsel, referencing a similar issue decided by the Hon'ble High Court of Bombay in a previous case. The Tribunal finds that the appellant had indeed cleared the exempted goods for export under bond, which is undisputed. Citing the judgment of the Hon'ble High Court of Bombay, the Tribunal concludes that the impugned orders are unsustainable and should be set aside in favor of the assessee.

Regarding the Revenue's appeal, since the Tribunal has allowed the assessee's appeals on merits, the appeal filed by the Revenue is deemed to be dismissed. Therefore, all the appeals are disposed of accordingly. The order is dictated and pronounced in open court, finalizing the decision on the issues raised in the appeals.