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TMI Blog2016 (11) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... t availed by them. It is observed from the record that the appellant has proposed to reduce the drawback claim to the extent of Cenvat Credit availed by them and the same has been confirmed by the drawback department in their letter. For this reason credit cannot be denied on the ground that the appellant have made a claim of drawback - the appellant is legally entitled for the Cenvat Credit and need not to reverse the Cenvat Credit on the export of capital goods - appeal allowed. - E/1126/2011 - A/86930/16/SMB - Dated:- 9-3-2016 - Shri Ramesh Nair, Member (Judicial) Shri Rajesh Ostwal, Advocate for Appellant Shri H.M. Dixit, Asstt. Commr. (A.R) for respondent ORDER This appeal is directed against Order-in-Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this support he placed reliance on the following judgments: (i) Glass and Ceramic Decorators Vs. Commr. of C. Ex., Mumbai-I 2014 (305) E.L.T. 133 (Tri.-Mumbai) (ii) Essel Propack Ltd. Vs. Commissioner of Central Excise, Thane 2014 (314) E.L.T. 584 (Tri.-Mumbai) As regard the claim of drawback, he submits that though the claim of drawback is of 98% in terms of Section 74 of the Customs Act, 1962. Subsequently they realized that their mistake as Cenvat Credit was availed on the capital goods, to this effect they submitted a letter of dt. 26.10.2010 to the drawback department for reduction of drawback. The drawback department also taken a note of that letter dt. 21.2.2011 accordingly the drawback claim was reduced to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 taken) under bond without payment of duty. The decision of the Tribunal in the case of Videocon International Ltd. (supra) also confirms this view. 5.2 We also note that in the case of Essel Propack Ltd. decided vide Order No. A/1023/2013/EB/C-II, dated 20-11-2013, an identical issue came up for consideration before this Tribunal, where the capital goods procured on which credit was taken was subsequently re-exported without reversal of credit and this Tribunal in the said case held that the appellant is not required to reverse Cenvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order holding that the appellant is not required to reverse the credit at the time of exporting of the goods under bond . In view of the above judgments, it is settled that the capital goods on which credit was availed, if it is cleared for export there is no need to reverse the Cenvat credit. As regard the drawback claim by the appellant, the appellant is not entitled for the drawback in respect of the Cenvat Credit availed by them. It is observed from the record that the appellant has proposed to reduce the drawback claim to the extent of Cenvat Credit availed by them and the same has been confirmed by the drawback department in their letter. For this reason credit cannot be denied on the ground that the appellant have made a claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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