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TMI Blog2018 (2) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of Rule 6(6)(v) of the CENVAT Credit Rules, 2004 are applicable - refund allowed - appeal dismissed - decided against Revenue. - ST/21118/2014-SM, ST/21119/2014-SM, ST/21120/2014-SM, ST/21121/2014-SM, ST/21122/2014-DB, ST/21123/2014-SM - 22726 - 22731 / 2017 - Dated:- 26-10-2017 - SHRI ASHOK JINDAL, JUDICIAL MEMBER Shri Naveen K, Joint Commissioner (AR), For the Appellant Shri M.S. Nagaraja, Advocate, For the Respondent Per: ASHOK JINDAL Revenue is in appeal. 2. The facts of the case are that the respondents were engaged in export of iron ore fine and lumps falling under Chapter 2601 of Central Excise Tariff Act, 1985. During the course of manufacture of the goods, the respondent received certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 620 (Bom.) wherein this Tribunal examined the issue and observed as under: 5. In this case the appellant has procured inputs/input service on payment of duty which were gone in the manufacturing of exempted goods which were exported by the appellant. These facts are not in dispute. The intent of the legislation is not in dispute that the taxes are not to be exported. The same issue came up before Jobelle (supra) wherein this tribunal held that the sub-rule (5) makes an exception when exempted finished goods are either cleared to a free trade zone, SEZ, 100% EOU or are cleared for export under Bond without payment of duty. If the goods are exported on payment of duty after taking credit of duty paid on the inputs and utilizing the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bond in terms of the provisions of Central Excise Rules, 2002. 17. Sub rule (5) of Rule 6 of the Rules of 2002 was applicable only in case of exempted goods. That meant that the exception was not applicable in case of dutiable goods. It appears that this led to anomalous situations. For example, if the goods were dutiable and were exported, credit for CENVAT could not be claimed in respect of input of those goods, at least under the aforesaid exception clause. To overcome this kind of anomalous situations, exception clause contained in sub rule (6) of Rule 6 of CENVAT Credit Rules, 2004 has been made applicable to all excisable goods. 18. Learned counsel for the appellant argue that term excisable goods used in sub rule (6) of Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit Rules, 2004 are applicable. Further, I find that in the case of Salzer Controls Ltd. - 2003 (160) E.L.T. 1169 and Paras Ship Breakers Ltd. this Tribunal has held that non-execution of bonds are only technical lapse. Further, in the case of Well Known Polyester Ltd. (supra) wherein the exempted goods were exported without bond or LUT by an assessee who was not even registered without bond or LUT by an assessee who was not even registered with the Central Excise department. This Tribunal has held that execution of bond/LUT was only procedural lapse for which refund could not be denied. 8. Admittedly, in this case, appellant has not executed any bond for export of the goods. If the goods are exempted, execution of bond was not requir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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