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2018 (1) TMI 38 - AT - Central Excise100% EOU - Refund of unutilized CENVAT credit - goods cleared to 100% EOU and SEZs - whether the clearances made by an 100% EOU to 100% EOU are deemed export or not? - Held that - the goods cleared from 100%EOU to 100% EOU are deemed exports and therefore respondent is entitled to claim refund of accumulated Cenvat credit in their Cenvat credit account, in terms of Rule 5 of CCR, 2004 - reliance placed in the case of CCE & Cus. Vs. Anita Synthetics Pvt. Limited 2014 (9) TMI 368 - GUJARAT HIGH COURT wherein it has been held that the goods cleared from one 100% EOU to another 100%EOU are deemed exports and assessees are entitled to claim refund under Rule 5 of Cenvat Credit Rules, 2004 - decided against Revenue.
Issues:
1. Whether clearances made by a 100% EOU to another 100% EOU are deemed exports. 2. Entitlement of refund claim under Rule 5 of Cenvat Credit Rules, 2004 for goods cleared to 100% EOU. Issue 1: Deemed Exports for 100% EOU to 100% EOU Clearances: The case involved a dispute regarding whether clearances made by a 100% EOU to another 100% EOU should be considered as deemed exports. The Revenue contended that such clearances are not exports, citing a Chief Commissioners conference decision. However, the respondent argued that the Hon'ble Gujarat High Court had previously ruled in a case that such clearances qualify as deemed exports. The presiding Member referred to the Gujarat High Court's decision, emphasizing that no circular or notification from the Revenue supported the Revenue's view. The presiding Member upheld the Gujarat High Court's ruling, stating that clearances from 100% EOU to 100% EOU are indeed deemed exports, allowing the respondent to claim a refund under Rule 5 of the Cenvat Credit Rules, 2004. Issue 2: Refund Claim for Goods Cleared to 100% EOU: The primary contention revolved around the entitlement of the respondent to claim a refund under Rule 5 of Cenvat Credit Rules, 2004 for goods cleared to 100% EOU. The Revenue challenged the refund, arguing that goods cleared to 100% EOU do not qualify for a refund. Conversely, the respondent relied on the Gujarat High Court's decision and Rule 5 of the Cenvat Credit Rules, 2004 to support their claim for a refund. After hearing both sides, the presiding Member concluded that the respondent is entitled to claim a refund of accumulated Cenvat credit for goods cleared to 100% EOU, in alignment with the Gujarat High Court's decision and Rule 5 of the Cenvat Credit Rules, 2004. Consequently, the Revenue's appeal was dismissed, and the cross objections were also disposed of accordingly.
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