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of <h1>Tribunal grants cenvat credit on exports, reclassifies medicaments</h1> The Tribunal ruled in favor of the appellant, allowing cenvat credit on exported goods and overturning the Commissioner's decision on the classification ... Cenvat/Modvat – Department contended that since the appellant paid duty on exempted goods and not entitle to utilised the credit of said duty but as per appellant if the exported goods not dutiable entitle for refund under Rule 19(2) of CER, hence revenue exercise is neutral – Tribunal set aside the demand and allowed the credit to appellant Issues:- Classification of medicaments for export under specific chapters- Eligibility for cenvat credit on exported goodsClassification of Medicaments for Export:The appellant company, engaged in manufacturing medicaments, exported products labeled as P&P medicaments under chapter 3003.10. The Commissioner classified certain products as generic medicines falling under chapter 3003.20, leading to duty payment issues. The Commissioner disallowed modvat credit and imposed penalties. The appellant argued for cenvat credit eligibility based on Tribunal decisions in other cases.Eligibility for Cenvat Credit on Exported Goods:The Tribunal referred to previous cases where it was established that duty on final products and inputs for exported goods is reimbursable. Rule 19(2) of Central Excise Rules allows duty-free procurement of raw materials for export goods. The Tribunal found the situation to be revenue neutral, with no evidence of double benefits. Consequently, the Tribunal set aside the Commissioner's order, allowing the appeals with consequential relief.In conclusion, the Tribunal ruled in favor of the appellant, allowing cenvat credit on exported goods and overturning the Commissioner's decision on the classification of medicaments for export. The judgment emphasized the reimbursement of duty on final products and inputs for exported goods under relevant excise rules, ensuring a revenue-neutral process without double benefits.
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