Manufacturer wins refund of accumulated Cenvat Credit under Rule 5 for clearing goods to Mega Power Projects and SEZ units.

CESTAT Kolkata allowed the appeal and restored the refund of accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004. The appellant manufacturer had cleared excisable goods to Mega Power Projects and SEZ units, making them entitled to refund as per CBEC circular and established precedent in CCE Faridabad v. Delton Cables Ltd. The tribunal found no merit in the impugned order denying the refund claim.

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Issues:
- Refund of accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004 for goods supplied to Mega Power Project and SEZ.
- Interpretation of the term "export" in the context of goods supplied to SEZ.
- Applicability of CBEC circular No. 1001/08/2015 CE. 8 dated 28.04.2015.
- Examination of relevant legal provisions under SEZ Act and SEZ Rules.
- Comparison with previous judgments regarding refund claims for goods supplied to Mega Power Projects and SEZ units.

The judgment involves an appeal against the rejection of a refund claim for accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004. The appellant, a manufacturer of goods, filed refund claims for goods supplied to Mega Power Projects and SEZ units. The Revenue contested the claim, arguing that the goods were not exported as they were not taken out of India. The appellant relied on CBEC circular No. 1001/08/2015 CE. 8 dated 28.04.2015, which clarified the eligibility for refund in such cases. The Tribunal examined the definition of "export" under the SEZ Act, emphasizing that supply of goods from DTA to SEZ constitutes export. The Tribunal also referenced previous judgments, including Delton Cables Ltd., to support the entitlement to refund for goods supplied to Mega Power Projects and SEZ units.

The Tribunal found that the appellant, having cleared goods to Mega Power Projects and SEZ units, was entitled to a refund of accumulated Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004. The Tribunal highlighted the overriding effect of the SEZ Act provisions in case of inconsistency with other laws. Referring to CBEC circulars and legal provisions, the Tribunal concluded that clearances to SEZ from DTA constitute export, entitling the appellant to the refund claim. The Tribunal set aside the impugned order, restoring the adjudication order sanctioning the refund to the appellant. The appeal was allowed with consequential relief, if any.

In summary, the judgment clarifies the eligibility for a refund of accumulated Cenvat Credit for goods supplied to Mega Power Projects and SEZ units, emphasizing the definition of "export" under the SEZ Act. It underscores the significance of legal provisions and circulars in determining refund entitlement, aligning with previous judgments supporting refund claims for similar transactions. The Tribunal's decision upholds the appellant's right to the refund claim, emphasizing compliance with relevant laws and circulars governing such transactions.

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