2011 (2) TMI 1155

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....availing credit in respect of duty paid on the inputs used in the manufacture of excisable goods. During the month of January, 2006 the respondents exported certain quantity of their finished goods under bond and thereafter filed a refund claim in respect of the duty paid on inputs used in the manufacture of exported goods. The claim of the appellant is under Rule 5 of Cenvat Credit rules. A show cause notice was issued for denial of refund claim. The adjudicating authority denied the refund. However, on appeal filed by the appellants, Commissioner (Appeals) allowed the appeal on the ground that present respondents are eligible for refund in as much as they are not in a position to utilise the cenvat credit in respect of the inputs used in ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bharat Industries v. Commr. of C. Ex., Thane-I reported in 2006 (199) E.L.T. 148 (Tri.-Mumbai) Commr. of Central Excise, Jaipur-II v. Bhilwara Spinners Ltd. reported in 2008 (226) E.L.T. 222 (Tri.-Del.) 5. I find that there is no dispute regarding the eligibility of refund as provided under Rule 5 of Central Excise Rules. For ready reference the provisions of the rule are reproduced below : "Where any input or input service is used in the manufacture of final product which is cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the CENVAT credit in respect of the input or input service so used s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nufacturer is unable to utilize the credit. In the present case respondents are manufacturer of excisable goods and are clearing on payment of duty to domestic market. The refund claim for the month of January, 2006 in respect of the some goods which were exported. For the month of January, 2006 the respondents paid duty of more than Three crores from their PLA account after utilizing the credit. It means the respondents are continuously utilizing the credit availed in respect of the duty paid on inputs towards payment of duty on the finished products. 6. In the impugned order the Commissioner (Appeals) held that the respondents are eligible for refund in as much as they are not in a position to utilize the credit availed in respect....