TaxTMI 
TaxTMI 
2014 (8) TMI 705
X X X X Extracts X X X X
X X X X Extracts X X X X
....2. The Ld. Advocate appearing for the applicant has submitted that the applicant, is manufacturer of M.S. bars and rods falling under Chapter 72 of CETA, 1985. They used the billets as inputs for the manufacture of their finished goods. It is case of the Applicant that during the period December 2005 to January, 2007. They had exported the impugned input i.e. M.S. Billets as such to Nepal and utilized the credit taken against them for payment of duty on final products. The Ld. Advocate submits that department seeks to recover the credit utilized for payment of duty on the ground that the billets were not exported directly from the factory of their manufacturer and that the procedure prescribed under Notification 45/2001-NT for export under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2002. Reversal of credit held to be not required in such cases. It is the contention that this judgment has been upheld by the Hon'ble High Court of Karnataka at Bangalore in the case of CCE, Bangalore-I Vs. Resil Chemicals Pvt. Ltd. -2012 (278) ELT 301 (Karnataka). 4. Ld. A.R. for Revenue reiterated the findings of the adjudicating Commissioner. He submitted that export to Nepal and to other countries are not treated at par inasmuch as rebate of the duty paid on excisable goods exported to Nepal is not refunded to the exporters but His Majesty's Govt. of Nepal. In this case as the billets were duty paid, the same could have been exported under rebate but to circumvent, the benefit which was not available on export to Nepal has b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hese rules are silent regarding availment of Cenvat credit which is governed by the provisions erstwhile Modvat Rules (presently CENVAT Credit Rules, 2004). CENVAT Credit Rules provide for taking the credit on inputs/input services used in or in relation to manufacture of final products for payment of duty on such final products. According to Rule 3(5) of CENVAT Credit Rules, 2004, "When inputs or capital goods, on which CENVAT Credit has been taken are removed as such from the factory or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en manufactured in the said factory Provided that where the inputs are removed from the factory for home consumption on payment of duty of excise, such duty of excise shall in no case be less than the amount of credit that has been allowed in respect of such inputs under Rule 57A." Erstwhile Rule 57F(4) provides that the credit of specified duty in respect of the inputs used in the final products cleared for export under Bond or used in the intermediate products cleared for export shall be allowed to be utilized towards payment of duty of excise on similar products cleared for home consumption (or for export) on payment of duty and where for any reason such adjustment is not possible, by refund. 9. We find that p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red in the same factory) under the erstwhile Rule 57F(1)(ii) which cover all such cases within the ambit of proviso to Rule 57F(4). This expression was omitted by Notification No.28/95-CE(NT) dated 29.06.95 with a view to simplify the clearance procedure which has created doubt in respect of utilization of credit in such cases. It is not the intention of the Government of debar of such manufacturer exporter from utilizing the credit. Clearance of the inputs as such for export under Bond can still be treated at par with 'final product' and the manner of utilization of credit in such cases will be governed by the provisions of Rule 57F(4). 4. It is also observed that in case such inputs are cleared for payment of....