2012 (8) TMI 720

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....Central Excise Tariff Act, 1985. They are availing exemption of duty as per notification No. 30/2004, dated 9-7-2004. According to this notification, the readymade garments are exempted from whole of the duty of central excise subject to non-availment of credit of duty paid on inputs. In the impugned order, the adjudicating authority rejected the claim holding that the applicant have availed cenvat credit on inputs contrary to the conditions stipulated under Notification 30/2004, dated 9-7-2004; the applicant instead of reversing the cenvat credit availed on inputs on the date of opting for exemption under said notification has irregularly utilised for payment of duty on exports under claim for rebate of duties. 3. Aggrieved by this....

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....duty paid on goods exported, and it is established, the rebate has to be granted : In case of Simplex Mills Ltd. - 2000 (122) E.L.T. 613 (GOI), Department of Revenue and also in case of Birla VXL Ltd. v. C.C.E. - 1998 (99) E.L.T. 387 (Tri.-Del.), - Revisionary Authority has held the rebate claim cannot be rejected as long as the original invoice establishes the duty paid character of the goods so removed and exported. As there is no objection as to the duty payment on the said goods exported therefore applying the same principles, rebate has to be sanctioned pertaining to the duty paid on the goods exported. 4.4 The rebate of duty paid on goods exported is governed under the provisions of Rule 18 of Central Excise Rules, 2002 and is....

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....r observes when the goods are absolutely exempted from payment of duty (as under Notification No. 30/2004-C.E., dated 9-7-2004), the assessee cannot pay duty as per Section 5A(1) proviso wherein it has been provided "that where an exemption under sub-Section(1) in respect of any excisable goods from the whole of duty of excise available thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods." Moreover, when goods are exempted from payment of duty, no cenvat credit is permissible under Rule 6(1) of the Cenvat Credit Rules, 2004. Even the Cenvat Credit on the input services is not allowed for exempted goods. 9. Government further observes that although C.B.E. ....