2016 (3) TMI 101 - AT - Central Excise

Refund claim of accumulated Cenvat Credit - Rule 5 of Cenvat Credit Rules 2004 read with notification no. 27/2012-CE (NT) Dated 18/06/2012 in respect of un-utilized Cenvat Credit lying in balance in respect of duty paid inputs used in or in relation to the manufacture of find products and exported to SEZ unit - Held that - After perusal of the Board Circular no. 1001/8/2015-CX 8 dated 28/04/2015 and recent decisions of Tribunal in Commissioner of Central Excise and Customs Vs. NBM Industries 2011 (9) TMI 360 - GUJARAT HIGH COURT it is clearly held that supply of goods from DTA to SEZ has to be treated as export and entitled to refund of accumulated Cenvat Credit under Rule 5 of Rules, 2004.

Summary

Issues:
Refund claim of accumulated Cenvat Credit for goods cleared from DTA to SEZ under Rule 5 of Cenvat Credit Rules 2004.

Analysis:
The Revenue appealed against the Commissioner (Appeals) order setting aside the Adjudication Order. The respondent, engaged in manufacturing Ready Mixed Concrete, filed a refund claim of Rs. 15,87,176 for the period Oct-Dec 2013 under Rule 5 of Cenvat Credit Rules 2004. The claim was in relation to unutilized Cenvat Credit for duty paid inputs used in manufacturing products exported to SEZ unit. The Adjudicating Authority rejected the claim, but the Commissioner (Appeals) allowed the appeal by the respondent.

The main issue revolved around the interpretation of export in the context of goods cleared from DTA to SEZ. The Revenue contended that such clearances did not amount to export based on previous tribunal decisions. However, the respondent argued that recent board circulars and tribunal decisions clarified that such clearances should be treated as exports. The circular dated 28/04/2015 emphasized that under the SEZ Act, supply of goods from DTA to SEZ constitutes export, entitling the supplier to benefits like rebate under Rule 18 of Central Excise Rules 2002 and refund of accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules 2004.

After considering the board circular and relevant tribunal decisions, it was concluded that goods supplied from DTA to SEZ should be treated as exports, making the supplier eligible for refund of accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules 2004. The Order of the Commissioner (Appeals) was upheld, and the Revenue's appeal was rejected.