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2007 (7) TMI 493
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....of man-made fabrics and they were using Poly Viscose Yarn as raw material. (b) The input has suffered, inter alia, duty under AED (T & TA) Act. (c) The appellant exports the final product and no AED (T & TA) is leviable on the final product. (d) The input credit under AED (T & TA) has got accumulated and they are seeking refund of the same under Rule 5 of the Cenvat Credit Rules. 4. According to the learned Advocate, the refunds were allowed by the original authority after taking note of the certificate produced by the appellant that in respect of consignments for which refund claims were made no drawback or rebate has been claimed. 5. Learned SDR for....
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....s, condition and limitation as may be specified by the Central Government by Notification". 8. From the above it is seen that Rule 5 empowers allowing of refund of credit which cannot be utilized for any reason. The appellant's claim that as they are unable to utilize the credit of duty under AED (T & TA) Act on the goods exported by them they are claiming the refund. The Department has taken the view that as the AED (T & TA) could not be utilized if the final products are cleared for home consumption and in view of this restriction the refund sought by are not eligible. 9. However, it is noticed that if the inputs, namely cotton yarn is exported by the manufacturer or the third parties the same can be exported without payme....