TaxTMI 
TaxTMI 
2011 (3) TMI 1272
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....against the order passed by the Commissioner of Central Excise (Appeal) on 30th April, 2008 is allowed and it is held that the assessee is entitled to the rebate of duty paid on export of inputs/capital goods by reversing the amount equal to the amount of Cenvat credit taken on the said inputs/capital goods. 3. The assessee is engaged in manufacturing of printing ink. The assessee had purchased various inputs/capital goods from domestic suppliers and manufacturers and subsequently exported the same on payment of duty by reversing the credit of duty availed on those inputs/capital goods under Rule 3(4) of the Cenvat Credit Rules, 2002. Thereafter, the assessee filed rebate of duty paid on inputs/capital goods as per Rule 18 of Central ....
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....the judgment of the Himachal High Court in the case of CCE, Chandigarh v. Indian Overseas Corporation reported in 2009 (234) E.L.T. 405 (H.P.). 6. Secondly, Mr. Jetly submitted that clearance of inputs/capital goods for export by reversing the amount equal to the credit availed on those inputs/capital goods cannot be said to be clearance on payment of duty as contemplated under Rule 18 of the Central Excise Rules, 2002 and therefore rebate of duty could not be allowed. Thirdly, Mr. Jetly submitted that in the absence of establishing identity of exported inputs/capital goods with the duty paid inputs/capital goods, the rebate claim could not be allowed. 7. Mr. Shah learned Counsel appearing on behalf of the assessee submitted tha....
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....cts by reversing the input credit. Mode and manner of availing/utilizing the credit of duty paid on inputs/capital goods were set out in Cenvat Credit Rules, 2002 which are now replaced by Cenvat Credit Rules, 2004. Since the provisions relating to availment and utilization of credit of duty paid on inputs/capital goods under the Cenvat Credit Rules, 2002 as well as Cenvat Credit Rules, 2004 are identical, for the sake of convenience, we refer to the rules under the Cenvat Credit Rules, 2002 (2002 Rules for short). 11. Rule 3(1) of 2002 Rules sets out the categories of duties paid on any input or capital goods the credit of which can be taken when received in the factory of manufacturer of final product. 12. Rule 3(4) & Rule 3(....
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....inputs/capital goods, when clears said inputs/capital goods (without utilizing the same in the manufacture of final products) for export on payment of an amount equal to duty payable on such inputs/capital goods at the time of clearance for export is entitled to claim rebate of that amount. 15. The Central Government considered the dispute and by its Circular No. 283/1996, dated 31st December, 1996 held that when duty paid inputs/capital goods credit of which is taken are cleared for export as inputs/capital goods on payment of the amount as specified under Rule 57F(1)(ii) as amended, then such manufacturer shall be deemed to be the manufacturer of the exported inputs/capital goods and consequently entitled to claim rebate of the amou....