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TMI Blog2016 (10) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... "as such" under bond and export the goods without payment of duty. Para 3.4 of Chapter 5 of CBEC Central Excise Manual reads as follows - "3.4 There is no bar for a manufacturer to remove the inputs or capital goods "as such" for export under bond". - Therefore, the respondent cannot be faulted for removing the goods without payment of duty for export. Reliance placed on the decision of case of Glass and Ceramic Decorators vs. CCE, Mumbai - I [2014 (9) TMI 864 - CESTAT MUMBAI] where it was held that In respect of the goods on which credit has been taken, Circular issued by Board in 1996 as well as in 2000, clearly says that the manufacturer assessee is entitled to clear the inputs or capital goods for export (on which credit has been ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority vide his order dated 22/10/10 disallowed and demanded Cenvat credit to the tune of ₹ 11 lakhs. The Commissioner (Appeals) allowed such credit vide the impugned order and Revenue is in appeal before the Tribunal on this issue. The challenge by Revenue is on the point that the capital goods in respect of which Cenvat credit was availed were exported without use in the factory for the manufacture of excisable goods and, hence, do not qualify as capital goods as defined in Rule 2 (a) of the Cenvat Credit Rules, 2004. 2. I have heard Shri M.R. Sharma, learned DR for the Revenue as well as Shri Anurag Kapur, learned Advocate for the respondent. 3. The learned Advocate has cited the following case laws in support of their con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The plant in this case is capable for use for converting the Iron or-fines to be used by the appellants at a future date. The word used can denote be intermittent and/or use sometime in future; we find that both sides agree that the appellants are a manufacturer of declared final products of Iron and Steel and have the capacity or potential to use iron ore fines also. Therefore credit as over led cannot be denied . 5. I find no reason to take a different view in the matter and accordingly I hold that the appellant will be entitled to avail the Cenvat credit on these imported capital goods upon their receipt in the factory. 6. It is not in dispute that the appellants have re-exported the defective capital goods without putting them ..... X X X X Extracts X X X X X X X X Extracts X X X X
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