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TMI Blog2017 (1) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... rocurement as such, the appellant would accumulate adequate credit to avoid paying duty through account current. Though such accumulation is allowed when finished goods manufactured by the appellant are exported. Such a privilege is in concord with the general principle that taxes are not exported. But a manufacturer who adopts the strategy of procurement for export, on the strength of interpretation as proposed by appellant, would be misusing this facility to deprive exchequer of taxes in excess of normal offset of credit on inputs. This is not consistent with intend of tax by statute to levy of duty on manufacture of goods. Appeal allowed - decided in favor of appellant. - E/405/2012 - A/94654-94655/16/SMB - Dated:- 22-8-2016 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such for export under bond. Various decisions of the Tribunal besides that of Hon ble High Court of Madras in Ford India Pvt Ltd v. Assistant Collector [2011 (272) ELT 353 (Mad)] were also relied upon. 2. Heard Learned Authorized Representative and Learned Counsel for assessee. 3. The decision of the Hon ble Supreme Court and that of the Hon ble High Court of Madras as well as those of the Tribunal and the clarification relied upon by first appellate authority make it clear that there is no bar to removal of inputs as such and, if for export, the availment of CENVAT credit/MODVAT credit, and its attendant privileges, are within the scope of the Rules governing credit. None of these were called upon to decide on the issue framed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions applicable to the manufacturer may have to be followed. Hence, they have to be assessed on the value at which they are cleared and they should also pay duty at the rate prevalent at the time of clearance. The safeguard provided in the proviso is meant for protecting the interest of the revenue, in situations where such inputs happen to be exempted subsequently or the rate of duty has been lowered, in which case the credit originally taken may have to be paid as duty. This is the view, which can possibly flow from a simple and straight reading of the aforesaid Rule. 6. We accept the legal propositions covered by the citations made by the ld. consultant. No one can say that they physically manufacture these inputs, but the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cite decisions of the Hon ble Supreme Courts, various High Courts or the Tribunal, which may have only remote connection with the dispute and delivered in the context of water-tight compartmentalization of some aspect of duties of excise, the objectives and purpose of the statute are, all too often, given a miss by both sides to the dispute. It is necessary, at times, to take stock of our bearings to ascertain if we are yet on the highway of legislative intent, or having missed the trail somewhere, are wandering aimlessly on some by-lane. 7. The CENVAT Credit Rules, 2004, inasmuch as it is germane to the appellant, is notified by the Central Government in exercise of powers under section 37 of Central Excise Act, 1944 and, hence, cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision is not amenable to a treatment other than that accorded to capital goods ; in other words, the clearance of goods procured for manufacture of capital goods in any form other than as capital goods would take it out of the purview of inputs and disqualify it from being described as input. 9. There are compelling reasons for this conclusion. In the absence of a special legislative sanction to extend this facility of removal of such inputs procured for making of capital goods, there is no empowerment vested in the Central Government to prescribe terms, conditions and safeguards. Interpretation of the statutory provision in the manner pleaded by respondent cannot add to, amend or modify the delegated legislative powers vested by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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