export of bought outt items as such without reversal of cenvat credit-applicability of the decision of supreme court {ELT 295(353)}

[VINOD KUMAR]

Dear experts,

A manufacturer has exported 'bought out items as such' without payment of duty and without reversal of credit. It is neither their input nor capital goods. Further, it has not been used in manufacturing process and has been cleared as such like a traded item.

My query is (1) Whether the decision of Supreme Court in KCP Ltd. Vs CCE Chennai {ELT 295 (353) = 2013 (9) TMI 98 - SUPREME COURT   is applicable in above case i.e. reversal of Cenvat credit on bought out items (2) Whether Rule 6 (3D)(c) of CCR 2004 applicable.

The above case is special case as in all other 3 cases of export without payment of duty i.e. (1) CT-1 procedure under bond (2) LUT procedure and (3) Annexure-45 procedure under Notf No. 43/2001-CE(NT), only the original manufacture gets both the benefits of (1) non-reversal of Cenvat credit and (2) Export without payment of duty. Whereas, in above case a trader is getting the above benefits.

AI Summary

Manufacturer's Export Without Duty Payment: Supreme Court Ruling Inapplicable, Consider Filing for Refund per Rule 6(3D)(c) CCR 2004. A manufacturer exported 'bought out items' without paying duty or reversing Cenvat credit, treating them as traded items rather than inputs or capital goods. The query sought clarification on the applicability of the Supreme Court decision in KCP Ltd. Vs CCE Chennai regarding the reversal of Cenvat credit and the relevance of Rule 6 (3D)(c) of CCR 2004. The case differs from standard export procedures where manufacturers benefit from non-reversal of Cenvat credit and duty-free export. The response indicated that the Supreme Court case does not apply to this scenario and suggested filing for a refund.