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TMI Blog2022 (9) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015 had applied claiming the refund of Cenvat credit of an amount of Rs.12,14,299/- in terms of Rule 5 of Cenvat Credit Rules, 2004. After being scrutinized the claim was proposed to be rejected vide Show Cause Notice No. 6699/2015 dated 31.12.2015 on the ground that since the goods were exported without payment of duty but not under the bond or the letter of undertaking, that appellant was denied to claim the benefit of Rule 6(1) of Cenvat Credit Rules, 2004. Violation of Rule 9(2) and Rule 11(2) of Central Excise Rules was also alleged. The said proposal of rejection was initially confirmed vide Order-in-Original No. 02/2016 dated 13.05.2016. The appeal thereof has been rejected vide Order-in-Appeal No. 44/2018 dated 20.02.2018. Being ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -IV. It is further submitted that the appellants were otherwise entitled for the refund of Cenvat credit in terms of sub-rule 6 (v) of Rule 6 of Cenvat Credit Rules, 2004. With respect to the compliance of Rule 9 (2) and Rule 11 (2) of Cenvat Credit Rules, 2004, it is submitted that since the appellants had already provided the documents in support of the refund claim which were having all such particulars as are mentioned in the proviso to Rule 9 (2) of CCR, 2004 that the rejection of refund on the ground of lack of documents specifically as that of invoices is highly unjustified. Order under challenge is accordingly prayed to be set aside and appeal is prayed to be allowed. 3. Per contra learned DR while laying emphasis upon the findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in stock on the date on which any goods manufactured by the said manufacturer of producer cease to be exempted goods or any goods become excisable." 6. The perusal of this provisions makes it abundantly clear that manufacturer is allowed to take the Cenvat credit only when the manufactured product attracts some duty of excise/some kind of cess/some other kind of tax. Admittedly, the appellant's final product i.e. quartz was subject to nil rate of duty. 7. Coming to Rule 5 under CCR, 2004 which the impugned claim has been filed, it is clear that no doubt refund of Cenvat credit is available to a manufacturer who clears a final product for export without payment of duty but the mandate of such clearance is that it should be under bond or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty or unconditionally exempted, the exporter cannot avail credit of duty paid on the inputs used in the manufacture of said goods. However, he can claim rebate of duty paid on inputs used in the manufacture of excisable goods which are exported under rule 18 of Central Excise Rules, 2002. The procedure for claiming such rebate is laid down in Notification No.21/2004-CE (NT) dated 06.09.2004 as amended Or can claim duty drawback under Customs, Central Excise Duties and Service Tax Drawback Rule, 1995 9. Further, perusing Rule 6 of CCR, 2004, it becomes clear that Cenvat credit shall not be allowed to a manufacturer of final product on such quantity of input as is used in or in relation to the manufacture of exempted goods. Rule 6 of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds removed without payment of duty for export but only for those exports as were made under bond in terms of Central Excise Rules, 2002. As already observed above the export in the present case has not been made under bond. Though learned Counsel has relied upon the decision of Hon'ble High Court of Himachal Pradesh in the case of Commissioner of Central Excise Vs. Drish Shoes Ltd. reported as 2010 (254) ELT 417 (H.P.) . But it is perused that the said decision has been passed based upon the exception as was given in Rule 6(5) of CCR, 2002. It has been brought to my notice that Rule 6(5) stands omitted w.e.f. 1st April, 2011. Decision of Drish Shoes Ltd. (supra) is a decision prior the said amendment. That is decision of the time when the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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