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TMI Blog2014 (9) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs contained in waste cleared for home consumption - Held that:- the encashment of this credit is also not permissible and the same has been correctly disallowed by the Assistant Commissioner. - Decided in favour of Revenue. - Appeal No. 3485 of 2005 - Final Order No. 53231/2014 - Dated:- 22-8-2014 - Ms. Archana Wadhwa and Shri Rakesh Kumar, JJ. For the Appellant : Ms. Sweta Bector, Authorized Representative (DR) For the Respondent : Shri S.C. Kamra, Advocate JUDGEMENT Per. Rakesh Kumar :- The facts leading to filing of this appeal by the Revenue are, in brief, as under. 1.1 The respondent are manufacturers of Rayon Tyre Cord Yarn as well as Tyre Cord Fabric dipped and undipped falling under heading 54 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the output service and where for any reason such, adjustment is not possible, the manufacturer/output service provider shall be allowed the refund of such amount subject to the safeguards, conditions and limitations, as may be specified by the Central Government by a notification issued. The conditions in this regard are specified by Notification No. 11/02-CE (NT) dated 01/03/02 as amended by Notification No. 49/03-CE (NT) dated 17/05/03. The respondent in this case filed on 25/01/05, a claim for cash refund of unutilized Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002/2004 of ₹ 26,84,919/-. There is no dispute that this credit whose cash refund is sought under Rule 5 of the Cenvat Credit Rules comprises of BED of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een filed. 2. Heard both the sides. 3. Ms. Sweta Bector, the learned DR, assailed the impugned order by reiterating the grounds of appeal and emphasized that cash refund of unutilized accumulated Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002/2004 is admissible only in respect of the inputs which had been used in the manufacture of finished goods exported out of India and the Cenvat credit in respect of the inputs used in the manufacture of finished goods cleared for domestic consumption is not encashable under Rule 5, that when it is not disputed by respondent that out of the Cenvat credit of ₹ 53,44,899/- involved on the inputs which had been used in the manufacture of finished goods exported, the Cenvat credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such accumulated credit subject to such safeguards, conditions and limitation, as may be specified by the Central Government by notification issued under this Rule. From perusal of this Rule, it is clear that encashment is permissible only of Cenvat credit, which has been taken in respect of inputs which were used in the manufacture of final product cleared for export under bond or LUT and which cannot be utilized for payment of duty on the goods cleared for home consumption or on the goods cleared for export on payment of duty. Thus, if any accumulated Cenvat credit is attributable to the inputs, which were used in the manufacture of final products cleared for home consumption, that credit would not be encashable in terms of this Rule. Ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal in the case of CCE, Rohtak vs. Mittal International reported in 2009 (240) E.L.T. 421 (Tri. - Del.), of the Hon ble Punjab Haryana High Court in the case of CCE, Rohtak vs. Indo Dane Textile Industries reported in 2012 (275) E.L.T. 189 (P H) and of Hon ble Bombay High Court in the case of CCE, Thane II vs. D.C. Polyester Pvt. Ltd. reported in 2009 (242) E.L.T. 348 (Bom.) are not applicable to the facts of this case, as in this case, the dispute is not as to whether cash refund of unutilized AED (T TA) credit would be admissible there is no AED (T TA) leviable on the final product, but the issue involved in the present case is as to whether encashment of the Cenvat credit in respect of the inputs used in the manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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