TaxTMI 
TaxTMI 
2014 (9) TMI 735
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....arn suffers, in addition to basic excise duty, the additional excise duty (textile and textile articles) [hereinafter referred to as AED (T&TA). The respondent were availing Cenvat credit of BED and AED (T&TA) in respect of the yarn. However, the final product Rayon Tyre Cord Fabric attracted only the basic excise duty and there was no AED (T&TA). During the period of dispute, the respondent were exporting bulk of their production about 92%, under bond without payment of duty under Rule 19 of the Central Excise Rules, 2002. The total Cenvat credit involved in respect of the goods exported during July, 2004 to September 2004 was Rs. 53,44,899/- out of which the credit of Rs. 53,11,441/- was of the BED paid on the Rayon yarn and the cre....
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....ant Commissioner vide order-in-original dated 04/05/05 disallowed the refund of an amount of Rs. 25,757/- on the ground that this much Cenvat credit is involved on the quantity of inputs which was contained in 12,420 kg. of waste which had been cleared for domestic consumption on payment of duty and, as such, had not been exported. Beside this, he also observed that the respondent would be eligible for cash refund of AED (T&TA) credit only in respect of AED (T&TA) credit involved on the inputs used in the manufacture of finished goods, which had been exported and the respondent would not be eligible for cash refund of AED (T&TA) credit in respect of inputs which had been used in the manufacture of finished product, which had been cleared fo....
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.... of inputs used for manufacture of goods cleared for home consumption and as such this AED (T&TA) credit is not encashable. She also pleaded that the Commissioner (Appeals)'s order permitting encashment of the Cenvat credit in respect of inputs which were contained in the waste cleared for home consumption on payment of duty is also not correct as encashment of accumulated Cenvat credit is permissible only when the inputs have been used in the manufacture of finished goods which had been exported out of India under bond or of LUT. She, therefore, pleaded that the impugned order is not correct. 4. Shri S.C. Kamra, Advocate, the learned Advocate for the respondent, defended the impugned order by reiterating the findings of Commissioner (Ap....
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....(T&TA) credit sought to be encashed is Rs. 11,96,222/-. However, it is not disputed that at that time, the total credit attributable to the inputs used in the manufacture of finished goods exported was Rs. 53,44,899/- and out of this amount, the credit of Rs. 53,11,441/- was of the BED and the credit of Rs. 33,458/- was of the AED (T&TA), the correct figure of which according to the Assistant Commissioner should have been Rs. 13,458/-. Thus, it is clear that the balance amount of AED (T&TA) sought to be encashed i.e. Rs. 11,82,764/- (Rs. 11,96,222.00 - Rs. 13,458.00) is the AED (T&TA) credit in respect of inputs used in the manufacture of goods cleared for home consumption. Therefore, the encashment of this much amount of AED (T&TA) credit ....