2004 (6) TMI 396

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..... Narasimha Murthy, SDR, for the Respondent. [Order per : S.L. Peeran, Member (J)]. - By this appeal, appellant is challenging the correctness of the Commissioner's (Appeals) Order No. 161/2000 (H-I)-CE, dtd. 5-9-2001. The appellants had been granted refund for Rs. 1,36,635/-. However, they were issued with a show cause notice seeking to recover the same on the ground that they were not elig....

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....n any final products cleared for home consumption or for export or for payment of duty and where for any reason such adjustment is not possible. The manufacturer shall be allowed refund for such amount subject to such safeguard conditions and limitations as may be specified by the Central Government by the Notification in the Official Gazette. A special Notfn. No. 85/87-C.E., dtd. 1-3-87 was issue....

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....nsidered by the Board itself and a clarification was issued in this regard by Circular No. 701/17/2003-CX., dtd. 12-3-2003 and 702/18/2003-CX., dtd. 13-3-2003. In terms of this clarification, the refund of AED is required to be allowed under Rule 5 of Cenvat Credit Rules, regardless of the fact that the said duty is not eligible on the finished product. Therefore the Tribunal in the appellants' ow....

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....ct of AED which was not utilized for paying duty for domestic purpose is in order although there is no levy of AED on tyres. In view of the fact that the Para 6 of Notfn. No. 85/87-C.E., dtd. 1-3-87 clearly permits refund, in those circumstances where a manufacturer is not in a position to utilize credit of duty allowed under Rule 57A against goods exported during the quarter to which the claim re....