2009 (12) TMI 746

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....were exported through a merchant-exporter M/s. Metro Exporters Ltd. under DEPB Scheme. In each of the ARE-1, there is a column for declaration as to whether the goods have been exported by availing Cenvat credit or without availing Cenvat credit. Though in all these five clearances for export, the input duty Cenvat credit had been availed, the appellant declared in the ARE-I that the goods have been manufactured without availing any Cenvat credit. It is on this ground that a show cause notice dated 18-7-06 was issued to the appellant for denying the Cenvat credit amounting to Rs. 1,42,365/- in respect of these five export consignments. The show cause notice was adjudicated by the Asstt. Commissioner vide Order-in-Original dated 23-3-07 by w....

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....ot applicable when the goods are cleared for export under bond in terms of the provisions of Central Excise Rules, 2002, that in view of the provisions of Rule 6(5)(vi) of Cenvat Credit Rules, 2002, even though the goods had been cleared for export under bond without payment of duty, Cenvat credit is available to the appellant and the same had been correctly taken and that in view of this, there is no ground for recovery of the same. He also pleaded that Rule 5 of the Cenvat Credit Rules, 2002 also provides for refund of such Cenvat credit accumulated due to export which cannot be utilized for payment of duty on domestic clearances and the only condition for cash refund under Rule 5 is that the goods have not been exported under drawback cl....

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.... There is also no dispute about the fact that no input duty rebate or input duty drawback has been claimed. Since the goods cleared under ARE-I had been exported under bond without payment of duty, as per the provisions of sub-rule (6)(v) of the Cenvat Credit Rules, 2002, the Cenvat credit in respect of the inputs used in the manufacture of the goods exported cannot be denied even if the export are under DEPB Scheme in provisions of sub-rule (5)(vi) of Rule 6 of Cenvat Credit Rules, 2002 do not have any such condition. In fact under Rule 5, if this credit accumulated in respect of export of finished goods, cannot be utilized for payment of duty on domestic clearances, its cash refund is also permissible subject to condition that the goods h....