2018 (5) TMI 863 - AT - Central Excise

Refund of accumulated CENVAT credit - rejection on the ground that the export turnover of third party exports for computing export turnover value for the said quarter should not be considered - Held that - the goods which were cleared from the factory premises of the appellant were in fact exported - the appellant should submit the Bank Realization Certificate for the exports made through third party - the matter sent back to the adjudicating authority, for a limited purpose of verification of realisation of the goods cleared for exports - appeal allowed by way of remand.

Summary

Issues:
1. Rejection of refund claim for unavailed and accumulated CENVAT credit on export of goods.
2. Interpretation of export turnover value for computing total turnover of exports.
3. Requirement of Bank Realization Certificate for third-party exports.

Analysis:
1. The appeal was filed against the rejection of a refund claim for unavailed and accumulated CENVAT credit on export of goods for the quarter April 2015 to June 2015. The issue revolved around whether the goods cleared for exports through a third party should be considered as exports and included in the total turnover of exports for the purpose of refund claim. The first appellate authority set aside the original order, stating that goods cleared for exports through third parties should be considered as exports for computing total turnover of exports.

2. The Departmental Representative (DR) argued that the first appellate authority's findings were incorrect, emphasizing that only goods directly exported by the respondent should be considered for calculating export turnover. The DR contended that the matter should be remanded to the lower authorities for further examination. However, the Tribunal found that the goods cleared by the respondent for export through third parties should indeed be considered as exports, in line with the first appellate authority's interpretation and supported by relevant case laws.

3. The first appellate authority required the appellant to submit a Bank Realization Certificate for exports made through third parties to verify the realization of goods cleared for exports. The Tribunal agreed with this requirement, stating that the matter should be sent back to the adjudicating authority for verification purposes. Ultimately, the Tribunal disposed of the appeal, upholding the interpretation that goods cleared for exports through third parties should be considered in computing export turnover, subject to the submission of the necessary documentation.

This judgment clarifies the treatment of goods cleared for exports through third parties in refund claims involving unavailed and accumulated CENVAT credit, emphasizing the importance of considering such exports in the total turnover calculation. The requirement of a Bank Realization Certificate for third-party exports was deemed necessary for verification purposes, highlighting the need for proper documentation in such cases.