Reversal of CENVAT Credit: inputs obtained without duty payment bar drawback claims unless explicitly permitted under drawback rules. Inputs procured under the rule 19 duty-free procurement notification are not subject to sub-rules (1)-(3) of rule 6 of the CENVAT Credit Rules because those sub-rules regulate credit for inputs used in exempted goods by manufacturers of both dutiable and exempted goods. Separately, the Drawback Rules prohibit allowance of drawback where export goods are produced using excisable materials for which duty has not been paid; exporters claiming drawback must declare they have not availed the duty-free procurement facility and will be verified at drawback sanction.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reversal of CENVAT Credit: inputs obtained without duty payment bar drawback claims unless explicitly permitted under drawback rules.
Inputs procured under the rule 19 duty-free procurement notification are not subject to sub-rules (1)-(3) of rule 6 of the CENVAT Credit Rules because those sub-rules regulate credit for inputs used in exempted goods by manufacturers of both dutiable and exempted goods. Separately, the Drawback Rules prohibit allowance of drawback where export goods are produced using excisable materials for which duty has not been paid; exporters claiming drawback must declare they have not availed the duty-free procurement facility and will be verified at drawback sanction.
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