2010 (11) TMI 251 - AT - Central Excise

Textile manufacturer's refund claim upheld under Cenvat Credit Rules

The Commissioner (Appeals) upheld the textile manufacturer's refund claim under Rule 5 of Cenvat Credit Rules, 2002 for exported final products, amounting ... Refund claim - Rule 5 of Cenvat Credit Rules, 2002 - Merely because the claim was filed in an old format by itself, cannot be made a ground for denial of credit - the Revenue’s objection that the assessee was having home clearances also and should have used the credit for payment of duty on the same - the fact that 93% clearances were export related, does not stand rebutted by the Revenue - if the credit available can be utilized for payment of indigenous clearances, no assessee would like to claim refund of the same and to pay duty on home clearances out of their PLA - Find no merits in the Revenue’s appeal and accordingly reject the same- Issues:Refund claim under Rule 5 of Cenvat Credit Rules, 2002 for exported final products.Analysis:The respondents, engaged in textile manufacturing, filed a refund claim for Rs. 4,38,774/- for the period 1-6-06 to 30-6-06 due to being unable to utilize Cenvat credit on duty paid inputs for exported final products under Chapters 52, 55, 58, and 63. The claim was sanctioned but appealed by Revenue. The Commissioner (Appeals) noted the export of final products and relevant document submission. The Range Superintendent's report confirmed non-duty claim export and adequate Cenvat balance for home consumption duty. The Revenue's objection to the old refund claim format and home clearances was dismissed as irrelevant. The judgment emphasized that the claim format or home clearances do not affect refund eligibility, especially when 93% of clearances were for exports. Denial based on format or availability of credit for home clearances lacked merit, leading to the rejection of Revenue's appeal.