9911796707
TMI Blog2016 (11) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... of capital goods which was not installed and used in the factory of the appellant. Subsequently the said capital goods was exported under drawback in terms of Section 74 of the Customs Act, 1962. The show cause notice was issued proposing disallowance of the credit on the ground that the capital goods was not put to use in the factory and cleared as such in terms of Rule 3(5) of the Cenvat Credit Rules, 2004. If the capital goods is removed as such the duty equal to Cenvat Credit is required to be paid. The adjudicating authority has confirmed the demand of Cenvat Credit. Aggrieved by the adjudication order, appellant filed appeal before the Commissioner (Appeals), who upheld the Order-in-Original, on two counts (i) The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules to clear the capital goods under bond for export. The only provision is under Rule 3(5) of the Cenvat Credit Rules which provides for payment of duty on removal of capital goods as such without being put to use. 5. I have carefully considered the submissions made by both the sides. Though the appellant have taken credit on capital goods but cleared as such for export. It is settled position, that whatever goods are exported from India, duty suffered on the said goods cannot be exported. Therefore, the capital goods which was exported by the appellant either can be cleared under claim of rebate or drawback under bond. In such a situation Cenvat Credit is not required to be reversed, this issue has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly, we allow the appeal for consequential relief, if any, in accordance with law." Similarly, in the case of Essel Propack Ltd.(supra) the Division Bench of this Tribunal on the identical issue held as under: "6. In this case it is a fact on records that these capital goods have been procured in the year 1997 and availed CENVAT credit and the same has been cleared for export on 19th July, 2005. As per the C.B.E. & C. Board's letter 345/2/2000-TRU, dated 29-8-2000 wherein it has been clarified that under the existing procedure a manufacturer can export the goods under bond without payment of duty. This is a facility that is available to the manufacturer under excise procedure. In such case, the appropriate duty of excise that is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
