2009 (7) TMI 378 - AT - Central Excise

Appellate Tribunal rules in favor of exporters, allows duty refund on single yarn exports

The Appellate Tribunal CESTAT, CHENNAI allowed three appeals together regarding duty refund on exported single yarn. The Tribunal ruled in favor of the ... Refund of duty paid on export - refund of input duty credit - export of inputs as such - prevention of export of domestic taxes / encouragement of exportersRefund of duty paid on export - refund of input duty credit - export of inputs as such - Whether the appellants are entitled to refund/rebate of duty paid on exported single yarn and refund of input duty credit taken in respect of that yarn - HELD THAT: - The Tribunal found that where an assessee has taken input credit on inputs, the rules permit removal of such inputs as such for export. Although the appellants paid duty at the time of export, they claimed refund which was denied by the authorities below. Having regard to the legal position permitting export of inputs as such and the policy objective of encouraging exporters and preventing export of domestic taxes, the appellants are entitled to the duty paid on the yarn and to refund of the input duty credit taken in respect of the yarn, subject to the condition that such credit has not been otherwise utilised. The impugned orders denying the rebate/refund were held to be contrary to the legal provisions and government policy, and therefore liable to be set aside. The matter is remitted to the original authority for grant of the claimed benefit in accordance with law. [Paras 4]Impugned orders set aside; appeals allowed and matter remanded to the original authority to allow the claimed refund/rebate and input duty credit (unless already utilised).Final Conclusion: The appeals are allowed; the orders denying refund/rebate of duty on exported single yarn and refund of input duty credit are set aside and the matter is remanded to the original authority to grant the claimed benefits in accordance with law. The Appellate Tribunal CESTAT, CHENNAI allowed three appeals together regarding duty refund on exported single yarn. The appellants paid duty on the yarn for export and claimed refund, which was denied. The Tribunal ruled in favor of the appellants, stating they are eligible for both duty paid on yarn and refund of input duty credit unless already utilized elsewhere. The impugned orders were set aside, and the matter was remanded for the claimed benefit to be allowed.