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TMI Blog2018 (1) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... this purpose have seven mills in the factory. The dispute is with reference to the mill No. 1 which is used to manufacture the cotton yarn as well as knitted fabrics. The goods manufactured were mostly cleared domestically by availing full exemption under the Central Excise Notification No. 30/04-CE dated 09/07/2004. The exemption was subject to the condition that no Cenvat credit is availed on inputs as well as input services used in the manufacture. A part of the goods manufactured were also exported. The appellant claimed Cenvat credit on capital goods, and their spare parts used in this mill. By issue of the impugned order, Revenue deny such Cenvat Credit by taking the view that the goods manufactured using such capital goods enjoy exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Union of India, 2009 (235) ELT 614 (Bom.). He further submitted that above judgment was followed by the Hon'ble Himachal Pradesh High Court in the case of Drish Shoes Ltd. 2010 (254) ELT 417 (H.P.). (iii) He also submitted that the capital goods in question, during the period under dispute has also been used for making goods which were exported under claim of rebate. 4. Ld. DR justified the impugned order. He submitted that the goods remained fully exempted in terms of Notification No. 30/2004 and hence, the capital goods used for manufacture of such goods cannot be allowed Cenvat credit since these are being used exclusively in the manufacture of exempted goods. 5. We have heard both sides and considered the appeal record. The capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported without executing LUT claiming the goods as exempted under Notification No. 30/2004. In any case it is settled principle of law that only the goods are exported from the country and not the taxes. The Central Excise law provides for clearance of goods for export either under bond in which case the terminal excise duty is not paid at the time of clearance from the factory but in the terms of the bond the manufacturer is obligated to export the goods and get the bond closed. The other option available to manufacturer is to pay the said duty and export the goods and get the excise duty so paid rebated. In any case there is no doubt that the goods manufactured have been partially exported and partially cleared to the domestic tariff a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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