9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 145 - HC - Central ExciseAllowability of refund of Cenvat credit availed on inputs used in the manufacture of goods cleared by DTA unit to a 100% Export Oriented Unit - Held that - Insofar as clearances from DTA units to 100% export oriented units are concerned, the Tribunal has placed reliance upon the decision of the Supreme Court 2007 (4) TMI 6 - SUPREME COURT OF INDIA wherein it has been held that DTA sales against foreign exchange or other supplies in India can be equated with physical exports. Thus, the Tribunal has merely applied decisions of the jurisdictional High Court as well as the Supreme Court to the facts of the case while holding that DTA unit clearing goods to 100% EOU can be termed as export for the purpose of allowing DTA unit to claim refund of unutilized CENVAT credit. Under the circumstances, it is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to any question of law, much less, a substantial question of law so as to warrant interference. - Decided against Revenue.
Issues:
Refund of CENVAT Credit availed by respondent-assessee on inputs/ input services/ capital goods utilized in manufacturing goods cleared to a 100% Export Oriented Unit (EOU) without duty payment. Interpretation of Rule 5 of CENVAT Credit Rules, 2004. Applicability of physical export concept to clearances from Domestic Tariff Area (DTA) unit to a 100% EOU. Analysis: Issue 1: Refund of CENVAT Credit The case involves a dispute over the refund of CENVAT Credit claimed by the respondent-assessee for unutilized credit due to clearances made to a 100% EOU without payment of duty. The appellant challenged the Tribunal's decision, arguing that the Tribunal erred in relying on a previous court decision related to clearances between EOUs, which differed from the present case involving clearances from a DTA unit to a 100% EOU. The appellant contended that the Circular F.No.267/124/2007-CX.8 clarified that DTA units do not physically export goods but supply them to EOUs. The appellant sought to claim refund of terminal excise duty from the Ministry of Commerce instead. However, the Tribunal upheld the respondent's claim, applying previous court decisions and concluding that clearances from DTA units to EOUs can be considered exports for refund purposes. Issue 2: Interpretation of Rule 5 of CENVAT Credit Rules The appellant argued that the Tribunal misinterpreted Rule 5 of the CENVAT Credit Rules, 2004, by allowing the respondent to claim refund based on the nature of clearances from DTA units to EOUs. The appellant relied on the Madras High Court decision, emphasizing that physical export is distinct from deemed export, and the concessions under the EXIM Policy do not extend to local sales. However, the Tribunal found that the issue was directly addressed by the jurisdictional High Court and applied relevant Supreme Court decisions, including one stating that DTA sales to EOUs can be equated with physical exports. Therefore, the Tribunal concluded that the appellant's appeal lacked legal merit and dismissed it. Conclusion: The High Court, after reviewing the Tribunal's decision and the arguments presented, found no substantial question of law warranting interference. The Court upheld the Tribunal's decision, emphasizing that the Tribunal correctly applied existing legal precedents to determine that clearances from DTA units to EOUs can be considered exports for refund purposes. Consequently, the Court summarily dismissed the appeal due to the absence of any substantial legal issue.
|
