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TMI Blog2008 (9) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the period 9/2003 to 11/2004, the appellants had manufactured and exported PVC leather cloth under claim for rebate. As PVC yarn suffers Additional Duly of Excise (T&TA) and the finished product PVC leather cloth is not subject to AED (T&TA), the lower authorities decided that the appellant was not eligible for refund of AED (T&TA) pertaining to the polyester yarn used in the production of PVC leather cloth exported during the material period. The lower authorities were of the view that the final products being not subject to AED (T&TA), the appellant was not eligible to take credit of AED (T&TA) paid by them on the in put (polyester yarn). Reiterating the grounds taken in the appeal, the learned consultant submits that the dispute in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r export under bond or letter of undertaking, as the case may be, or used in the intermediate products cleared for export, the Cenvat credit in respect of the inputs so used shall be allowed to be utilised by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer 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 avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ample evidence to show that the inputs were used in the final product which was exported on payment of duty. Thus, refund is admissible." In the MRF Ltd. v. Commissioner case, the Tribunal had held a similar view. Operative part of the above decision is reproduced below:- "We observe that it is not the case of the department that the unprocessed fabrics have not suffered duty and have been received with proper documents. The contention of the assessee that the refund of Rs. 1,03,44,539/- is for the AED credit contained in the tyres exported under bond is also not contravened by the department. Further, CBEC circular No. 701 /17/2003-CX dated 12-3-03 vide para 3 has also clarified that refund of AED (GSI) shall be allowed under Rule 5 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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