2017 (6) TMI 371 - AT - Central Excise

CENVAT credit - base paper and blister PVC films - manufactured goods exported as such - Held that - the CBEC s Manual of Instructions and CBEC s Circular F No. 345/2/2000- TRU dated 29.08.2000, states that the appellant is entitled to CENVAT credit for the goods exported as such - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against disallowed Cenvat credits for exported goods.

Analysis:
The appellant, a manufacturer of dry battery cells, exported goods using base paper and blister PVC films without reversing Cenvat credit. The Department contended that Cenvat credit on duty paid for exported goods should not be allowed. Two show cause notices were issued, leading to Orders in Original confirming the demands. The Commissioner (Appeals) upheld the Orders, prompting the appellant's appeal before the Tribunal.

Upon reviewing the case and submissions from both sides, the Tribunal referenced the Central Excise Manual of CBEC, specifically Chapter 5 on Cenvat credit. It highlighted that manufacturers can export inputs or capital goods under bond without duty payment, as per the Manual's instructions. Additionally, a CBEC clarification from 2000 emphasized that excisable goods can be exported under bond without duty payment. The Tribunal cited a previous case involving Videocon International Ltd., where it was held that circulars beneficial to a party must be followed, as per Supreme Court precedent. The Tribunal concluded that based on the Manual, CBEC circular, and previous rulings, the appellant was entitled to Cenvat credit for goods exported as such.

Consequently, the Tribunal set aside the impugned order, allowing the appeal and granting any consequential relief to the appellant as necessary. The decision was pronounced in open court, affirming the appellant's entitlement to Cenvat credit for exported goods as per relevant legal provisions and precedents.