2009 (7) TMI 378 - AT - Central Excise

Rebate - find that when an assessee takes credit on inputs, rules allow him to remove the inputs as such for export without payment of duty. In this case, the appellants have paid duty while exporting the inputs and are claiming rebate of the duty paid on such exports. It is the policy of the Government to encourage exporters and to ensure that domestic taxes are not exported. In the present case, the appellants are not only eligible for duty paid on the yarn but they are also eligible for refund of the input duty credit taken in respect of the yarn unless such credit has been already utilised elsewhere. The authorities below have passed an order denying the rebate which is contrary to the legal provisions as well as the Government policy. As such, the impugned orders are set aside

Summary

The Appellate Tribunal CESTAT, CHENNAI allowed three appeals together regarding duty refund on exported single yarn. The appellants paid duty on the yarn for export and claimed refund, which was denied. The Tribunal ruled in favor of the appellants, stating they are eligible for both duty paid on yarn and refund of input duty credit unless already utilized elsewhere. The impugned orders were set aside, and the matter was remanded for the claimed benefit to be allowed.