9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 670 - AT - Central ExciseDenial of credit on the duty paid on capital goods put to use in the factory of production and thereafter the capital goods were exported under bond - Held that - As capital goods are exported under bond and the Board vide Circular No. 345/2/2000-TRU dt. 28.9.2000 clarified that inputs and capital goods on which credit has been availed can be cleared without payment of duty under bond for export purposes - decided in favour of assessee.
Issues:
1. Total waiver of pre-deposit of duty amounting to Rs.20,22,294 on capital goods exported under bond. Analysis: The main issue in this case was the demand for duty payment on capital goods that were exported under bond after availing credit on the duty paid. The Revenue argued that as per Rule 3(5) of the CENVAT Credit Rules 2004, when capital goods on which credit is availed are removed from the factory, the manufacturer is required to pay an amount equal to the credit availed. However, the applicant contended that since the capital goods were exported under bond, the demand for duty was not sustainable. They relied on a Board's Circular and a Tribunal decision supporting their stance. The Tribunal examined the facts and legal provisions presented by both sides. It noted that the capital goods were indeed exported under bond, and referred to the Board's Circular which allowed clearance of goods for export without duty payment when credit had been availed. Additionally, the Tribunal considered a previous decision where a similar issue was decided in favor of the manufacturer based on the Board's Circular. Consequently, the Tribunal found that the applicant had a strong case in their favor. As a result, the Tribunal granted a total waiver of pre-deposit of duty, interest, and penalties for the hearing of the appeals, and allowed the stay petitions. This judgment highlights the importance of understanding the specific provisions of the law and relevant circulars in cases involving duty payments on exported goods after availing credit. It also underscores the significance of precedents set by previous decisions in similar matters, which can influence the outcome of current cases.
|
