2017 (1) TMI 792 - AT - Central Excise

Refund claim - clearance of goods to 100% EOU - rejection on the ground that goods have been cleared to 100% EOU under CT-3 certificate, without payment of duty - Held that - similar issue decided in the case of Commissioner of Central Excise & Customs v/s NBM Industries, 2011 (9) TMI 360 - GUJARAT HIGH COURT where it have been held that Refund of Cenvat credit was available on inputs used in manufacture of goods cleared by DTA unit to 100% EOU. Refund could not be denied on ground that it was a case of deemed export, under Rule 5 of CCR, 2004 - refund allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
- Appeal against Order-in-Appeal No.146-CE/NOIDA/2006 dated 29.11.2006
- Refund claims filed by respondent for duty paid on inputs used in manufacturing
- Rejection of refund claims by Deputy Commissioner Central Excise, Noida
- Appeal before Commissioner (Appeals) allowed in favor of respondent
- Revenue's appeal before Appellate Tribunal CESTAT ALLAHABAD

Analysis:
1. The appeal was filed by the Revenue against Order-in-Appeal No.146-CE/NOIDA/2006 dated 29.11.2006. The case involved the respondent, engaged in manufacturing auto components falling under Tariff Entry No.87089900 of the Central Excise Tariff Act, 1985. The respondent cleared goods on payment of excise duty and availed credit of duty paid on various inputs used in manufacturing final products.

2. During June 2004 to December 2004, the respondent supplied goods to a 100% EOU without duty payment under a specific notification. The respondent filed refund claims as they were unable to utilize Cenvat credit due to export. The claims were rejected by the Deputy Commissioner Central Excise, Noida, stating that the goods were cleared to EOU without duty payment, and actual export documentation was not provided.

3. The respondent appealed before the Commissioner (Appeals), who allowed the appeal, leading to the Revenue's appeal before the Appellate Tribunal. The respondent argued that the exemption under Notification No.22/03-CE applied to their situation, providing relief from excise duty for goods used in manufacturing for export. The respondent also cited a ruling of the Gujarat High Court supporting their claim for refund.

4. The Tribunal, after considering the arguments, found in favor of the respondent based on the precedent set by the Gujarat High Court in a similar case. The Tribunal dismissed the appeal by the Revenue and allowed the Cross Application in favor of the respondent. The judgment highlighted the importance of following specific procedures and conditions outlined in the notifications for claiming exemptions and refunds under the Central Excise Act.