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TMI Blog2004 (12) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... pter 72 of Central Excise Tariff Act), which were exported out of the country. Refund of such accumulated credit is permissible under Rule 57-AC(7) under certain conditions. The Commissioner (Appeals) confirmed the order of the lower adjudicating authority rejecting the refund claim. The Commissioner (Appeals) confirmed the order on the following grounds. We quote : The most important limitations/condition is given against Sr. No. 5 of the Appendix which reads as under : The Refund is allowed only in those circumstances where a manufacturer is not in a position to utilize the credit of the duty on inputs allowed under Rule 57AB of the said rules against goods exported during the quarter or month to which the claim relates. Perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit described at Sr. No. 2 above could be utilized by the manufacturer in clearance of goods for home consumption? Or 4. For export on payment of duty. In the light of the above what is relevant is as to how much credit was involved on inputs used in goods, which were exported during the quarter to which the refund relates. It is seen from the submissions made by the Appellant before the Adjudicating Authority that during the quarter credit on inputs used in exported goods was Rs. 5,36,02,238/- and that goods cleared for home consumption during quarter involved duty of Rs. 16,79,82,831/-. It has not been claimed that export was made on payment of duty. Therefore in terms of Rule 57AC(7) of erstwhile Central Excise Rules, 1944 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now it has been held that, the accumulated credit was capable of utilization either for goods cleared for home consumption or for exports on payment of duty. During the quarter in question namely July 2000 and September 2000, the appellant could not utilize credit for payment of duty to final products and hence we hold that, they satisfied the condition laid down under Rule 57AC(7) of the Central Excise Rules and are hence entitled to cash refund of accumulated credit. The fact that in the future that is in the forthcoming quarters, they could have utilized the accumulated credit for payment of duty is not relevant as what has to be seen is the capacity of utilization of credit for payment of duty in a particular quarter. Our view is suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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