9911796707
TMI Blog2022 (5) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... aim in terms of Rule 5 of Cenvat Credit Rules, 2004. 2.1 The appellant-assessee is a 100% EOU engaged in manufacture of engineering goods which are fully exported. During the course of manufacture, certain waste arises. 2.2 As the appellant-assessee had exported the goods under a bond or a letter of undertaking, they made claim for refund of cenvat accumulated with them in respect of the goods exported by them in terms of Rule 5 of Cenvat Credit Rules. 2.3 They had also cleared the waste and scrap generated during the course of manufacture in DTA on payment of duty. The refund claims filed by the appellant on monthly basis were modified by the concerned Deputy Commissioner/Assistant Commissioner to the extent of the scrap actually genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput output norms. The only condition prescribed by Rule 5A is that the appellant-assessee should not be in a position to utilize the accumulated credit on account of the goods exported under a bond or a letter of undertaking. There is no dispute that the appellant-assessee had exported their entire production as they are an export-oriented unit. For manufacture of the export goods they had utilized certain indigenous raw material which they procured on payment of duty and had taken cenvat credit of the duty paid. The entire inputs were consumed in production of the export goods and as byproduct certain waste had been generated which had been cleared by them on payment of duty. The refund sought is to the extent of the credit which they are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provider of output service shall be allowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification: Provided that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of service tax under the Export of Service Rules, 2005 in respect of such tax. Provided further that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act shall be utilised for payment of service tax on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Revenue is not sustainable for this reason only. We are also supported by the decisions as follows:- Kochar Sung-Up Acrylic Ltd. [2008 (225) ELT 68 (Tri.-Del.)]. Para 5 of the said decision reads as under:- "5. As per the provisions of this Rule 5 of Cenvat Credit Rules, the refund is admissible in respect of inputs used in the manufacture of final product which are cleared for export. There is no dispute regarding the use of inputs in the manufacture of final products which was cleared for export. There is no prohibition under the Rules for claiming refund in respect of credit on inputs contained in the waste. In these circumstances, I find as the credit is admissible in respect of inputs used in the manufacture of final products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri.-Del.)]. Para 6 of the said decision reads as under:- "6. In terms of Rule 5 of the Cenvat Credit Rules, where any input or input services have been used in the manufacture of final product cleared for export under bond/LUT or has been used in the intermediate product cleared for export, the Cenvat credit in respect of input or input services so used shall be allowed to be utilised by the manufacturer towards payment of Central Excise duty on the final products cleared for home consumption or cleared for export on payment of duty and where for any reason, such adjustment is not possible, the accumulated Cenvat credit can be refunded in cash subject to the safeguards and conditions as prescribed by the Central Government by notification ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
