TaxTMI 
TaxTMI 
TaxTMI 
2010 (12) TMI 1025
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....t M/s. Inter Globe Services, Mumbai is engaged in export of the goods manufactured by the processors. The processor brought the exempted grey fabrics and after processing the same, effected the clearances for export under the claim for rebate of duty paid from the balance of accumulated Cenvat credit. As per the provisions of Notification No. 30/2004- C.E. (N.T.), dated 9-7-2004, all the specified Textile Articles are exempted if no credit of duty paid on inputs (or capital goods) has been taken under the provisions of the Cenvat Credit Rules, 2004. The processed fabrics of various types manufactured by the assessee are exempted in terms of Notification No. 30/2004-C.E., dated 9-7-2004, as amended. 3.3 After due process of adjudicatio....
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....duty paid is not sufficient for claiming exemption from payment of duty in terms of Notification No. 30/2004-C.E. (N.T.), dated 9-7-2004. The said Notification requires that "no input credit" should have been availed. Applicant submits that processors have in ARE-1 categorically stated that goods in question were manufactured from inputs on which cenvat credit had been availed. Applicant submits this averment made by the manufacturers, in ARE-1 has not been controverted by the Department except by controverting that grey fabric was non-duty paid. Applicant submits that since it is not the case of the department that no credit whatsoever was taken on all inputs, the processors could not have claimed benefit of Notification No. 30/2004-C.E., ....
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....that the adjudicating authority as well as the appellate authority have overlooked the fact that : (i) sub-section (1A) has been introduced only with effect from 13-5-2005 and would not apply to clearances which have been made prior to 13-5-2005. The rebate claimed to the tune of Rs. 52,76,231/- is in respect of the clearances prior to 13-5-2005, for which period, even as per the revenue, there was no provision by which a manufacturer was obliged to claim exemption. (ii) Insofar as the period after 13-5-2005 is concerned, what the authorities have overlooked is the fact that sub-section 1A has two parts to it. The first being that excisable goods should be wholly exempt from the duty of excise lev....
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....ant submits that the only reason why the appellate authority has upheld the rejection of rebate is that the duty was paid in violation of statutory provisions for which the Department could not be compelled to grant cash refund. Applicant submits that in terms of Rule 18 of Central Excise Rules, 2002, a manufacturer is entitled to rebate of duty paid on the excisable goods. Applicant submits that undisputedly what is paid by the manufacturer was duty of excise; that as what was paid by manufacturers was duty. It was entitled to rebate of the same in terms of Rule 18 of the Central Excise Rules, 2002; that the question whether what was paid was not statutorily payable or otherwise cannot be examined in these proceeding nor can it have any be....
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....ocessed fabrics. Hence they are not covered under Notification No. 30/2004-C.E., dated 9-7-2004 and they have rightly paid duty under Notification No. 29/2004-C.E., dated 9-7-2004 and they are eligible for rebate. 8. Government further observes that prior to 9-7-04, the yarn manufactured by the applicants were chargeable to central excise duty @ 8% or 16% in terms of Chapter 52 and 55 of the Central Excise Tariff Act, 1985. The Central Government has issued the exemption Notification No. 29/2004-C.E., dated 9-7-04, for granting partial exemption by which the goods manufactured are chargeable to duty 4% or 8%, and Notification No. 30/2004-C.E., dated 9-7-2004 granting full exemption from payment of central excise duty, subject to the c....
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....ailing exemption under this Notification (30/2004-C.E., dated 9-7-2004) and if manufacturers avail input cenvat credit, they would be ineligible for exemption under this Notification (30/2004-C.E., dated 9-7-2004). However, Board further allowed the availment of proportionate credit on the inputs utilized in the manufacture of goods cleared on payment of duty (under Notification No. 29/2004-C.E., dated 9-7-04) should be taken at the end of the month only. Government observes that the purpose of this clarification was only to check that the manufacturer should not claim cenvat credit on the inputs and avail exemption under Notification No. 30/2004-C.E., dated 9-7-04. 10.  During the relevant period, the applicants were clearing the goo....