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TMI Blog2007 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... that though these inputs were used in the final product, which were removed on payment of duty by adjusting the Cenvat credit, the additional duty which was paid in respect of such inputs under the said AED (T TA) Act was not utilized towards the final products in which these inputs were used, because no additional excise duty was payable on the final products. It is also admitted that in all these cases the final products which were exported were removed from the premises of the respondents under the rebate claim relatable to the provisions of Rule 18 of the Central Excise Rules. 3. Both the sides have advanced their contentions on the basis of the paper book of Central Excise Appeal No. 3618 of 2006. In that case, the respondent was registered for manufacture of "made ups", textiles home furnished articles and was availing Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2002. Their refund claim was in respect of Cenvat credit of additional excise duty on the ground could not be utilized for home clearances and that they had consumed the raw material purchased for the manufacture of excisable goods exported on payment of duty under the rebate claim of duty. They, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of undertaking. All the appeals were, therefore, allowed by sanctioning the refund claim of the present respondents. 5. The learned authorized representatives for the department submitted that the respondents did not submit any details of inputs used in or in relation to the manufacture of the final products which were cleared for export. It was also submitted that in the show cause notice, it was alleged that such details of inputs used in relation to manufacture of final products which were cleared for export under bond or letter of undertaking were not furnished, which implied that the party was asked for details of the goods exported under bond. It was submitted that the Notification No. 11/2002-C.E., dated 1-3-2002, did not allow refund of Cenvat credit of inputs used in or in relation to the manufacture of final products cleared for export on payment of duty under a rebate claim. The respondents had filed their refund claims under Rule 5 of the Cenvat Credit Rules, 2002, and the conditions of Notification No. 11/2002 which was issued under the said Rule 5 were binding on the respondents. Since they were already granted rebate claims under Rule 18 of the Central Excise Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Where any inputs are used in the final products which are cleared for export under bond or letter of under taking, as the case may be, or used in the intermediate products cleared for export, the Cenvat credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations as may be specified by the Central Government by notification. Provided that no refund of credit shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims a rebate of duty under the Central Excise Rules, 2002, in respect of such duty". 7.2 The basic requirement for refund under Rule 5 is that the inputs should be used in the final products and such final products should be cleared for export or used in the intermediate products cleared for export as provided thereunder. The Cenvat credit in respect of such inputs which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations as may be specified. While Rule 18 applies to grant of rebates of duty by virtue of notification issued thereunder, Rule 19 relates to export without payment of duty subject to the safeguard conditions, as may be specified by notification issued by the Board. It is by virtue of the requirement in the notification issued under sub-rule (3) of Rule 19 that the question of bond or letter of undertaking could arise. Such Notification 42/2001-C.E., dated 26-6-2001, was issued by the Central Board of Excise and Customs under sub-rule (3) of Rule 19, which provided export under bond of the goods which were exported from the factory without payment of duty. The exporter was required to furnish a general bond in the form specified with out payment of excise duty. In the present case, admittedly, there were no exports without payment of excise and, therefore, Rule 19 had no applicability. Thus, no question had arisen of execution of bond as required by the said notification issued under Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining that ground canvassed by the Revenue. 9. The facts clearly disclose that the Commissioner (Appeals) was right in holding that there was ample evidence to show that the inputs were used in the final product which was exported on payment of duty. Under Rule 3(b) of the Cenvat Credit Rules, credit in respect of additional duties of excise leviable under Section of the Additional Duties of Excise (Textiles and Textile Articles) Act could be utilized towards payment of additional duty of excise leviable under that Act and, therefore, obviously, it could not have been utilized for paying the basic excise duty payable under the Central Excise Act, 1944 in respect of which rebate claim was separately made under Rule 18. The rebate claim was confined only to basic excise duty. Therefore, it did not debar the appellant from claiming refund of additional excise duty under Rule 5, since the Cenvat credit relating to such duty could not be adjusted. 10. For the foregoing reasons, there is no warrant for interference with the impugned orders of the Commissioner (Appeals) which have been made on the basis of the material on record and for cogent reasons. All the appeals are, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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