2007 (8) TMI 240

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..... ported the final goods under bond, credit availed not required to be reversed – moreover ARE-2 is common for export under rebate & bond – credit allowed
Shri P. Karthikeyan, Member (T) [Order per]- This is an appeal filed by the Revenue against an order of the Commissioner of Central Excise (Appeals), Salem. In the impugned order, the Commissioner has vacated the order of the original authori .....

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..... itled to use duty-paid yarn along with non-duty paid yarn procured under Notification No.43/2001-CE for the purpose of export without payment of duty. A major ground taken by the original authority in disallowing the Modvat credit is that A.R.E.2 form contained a certification to the effect that the exporter had not availed facility of Cenvat Credit Rules, 2001. This requirement evidenced that man .....

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..... in discharge of export obligation and where facility of inputs stage credit was availed under Cenvat Credit Rules, 2001. The Commissioner found that the bar against availing Cenvat credit applied only in cases where export was under claim for rebate. There was nothing in the relevant rules or procedure which lays down that credit should not be taken of duty paid on inputs which were used in the ma .....

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..... duty paid raw material would be purchased and CENVAT credit availed. The credit availed would be used for clearing goods for home consumption. By taking CENVAT credit, the respondents were trying to availing the facility under both Rule 18 & 19. 3. Heard both sides. The Commissioner found that the relevant Rules/Notification governing procurement of inputs without payment of duty for export und .....

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..... As long as the respondent did not claim the input stage credit and had exported the finished goods under bond. There is no requirement that the credit availed by the exporter should be reversed. The lower authority had proceeded on a wrong reading of the proforma of the application for removal of goods for export and the impugned order has rectified the error committed by the original authority. .....

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