TaxTMI 
TaxTMI 
TaxTMI 
2014 (11) TMI 577
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....of duty. The Appellants also import the same duty free, under Advance Authorization Scheme/Duty Free Import Authorization. Such duty free imports are normally made after fulfilment of export obligations and issue of Export Obligation Discharge Certificate, which means that the import of PTA and MEG, under Duty Exemption Scheme is normally made after export, as replenishment materials. On an average, duty free procurement of PTA and MEG, under aforesaid duty exemption schemes would be approximately 10% of the total requirement. To manufacture the final product PSF it takes approximately 8 to 10 days, after receipt of inputs. The actual consumption of inputs by the Appellants for manufacture of PSF is less than the consumption norm declared by DGFT, in Standard Input Output Norms ("SION" for short). As the actual consumption is less than the SION, there would be marginal excess quantity of inputs, when imported under any duty exemption schemes, after fulfilment of export obligation. 3. Further, the rate of duty on inputs was more than the rate on final product. Therefore, there was always accumulation of credit which could not be utilized by the Appellants either for home clearance ....
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....LT 614 (T) g) that Rule 5 of CCR being a beneficiary piece of legislation, the refund cannot be denied. In support of that he relied on Idol Textiles Ltd. - 2007 (217) ELT 299 (T) & Navbharat Industries - 2006 (199) ELT 148 (T). h) that one-to-one co-relation of the inputs and export goods not required for claiming refund of accumulated credit, under Rule 5 of CENVAT Credit Rules, 2004, for which he relied on the following judgments: vi) Motherson Sumi Electric Wire - 2010 (252) ELT 543 (T) which has been upheld by Karnataka High Court - 2012 (278) ELT 177 (Kar.) vii) Capiq Engineering Pvt Ltd. - 2009 (245) ELT 186 (T) 5. He further submitted that that ratio of Tribunal's judgment in Bhushan Ltd. relied by the ld. Commissioner is not applicable to the facts of this case as in that case, concession was given by the Advocate appearing for the assessee; and in that said judgment, the judgments in U.K. Paints (supra), Ispat Industries Ltd. (supra) and Bhilwara Spinners Ltd. (supra) were not considered, therefore, the said judgment is a per incurrium. He f....
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....he continuing process, that therefore it is leading to double benefit. 10. In fact the detail chart/statement produced by the appellant before us has not been discarded by any supporting evidence by the revenue against the appellant. Therefore, the statement produced by the appellant is reliable document to substantiate that the duty paid goods have been used in the manufacture of final export product. 11. We further find that for the relevant period Foreign Trade Policy 2009-14 is applicable, which is reproduced hereunder:- "4.1.4 Advance Authorisations are exempted from payment of basic customs duty, additional customs duty, education cess, antidumping duty and safeguard duty, if any. However, imports forsupplies covered under paragraph 8.2 (h) & (i) will not be exempted from payment of applicable anti-dumping and safeguard duty, if any. 4.1.5 (a) Advance Authorisation and / or materials imported thereunder will be with actual user condition. It will not be transferable even after completion of export obligation. However, Authorisation holder will have option to dispose of product manufactured out of duty free inputs once export obligatio....
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.... Industries Ltd. (supra), this Tribunal observed as under:- "Heard both sides. Under the impugned orders, the lower authorities have denied refund of accumulated Cenvat credit of Rs. 1,98,82,260/-to the appellants. The appellants have exported the final products during the period July, 2002 and September, 2002 and the shipments were made under the DEPB scheme as evidenced from the export documents. Hence, it is not in doubt that they have not availed of any drawback of the input duty. It is the stated policy of the Govt. to promote exports and the minimum assistance the authorities below can extend is not to cause impediments in implementing clear policies of the Govt. It is no one's case that the exporter should bear the domestic levy on inputs or pass it in turn to the foreign buyer making Indian goods dearer in the foreign market. In the facts of this case, the appellants are clearly eligible to get refund of accumulated Cenvat credit of duty paid on inputs against exports made. Hence, we allow the appeal with consequential benefit to the appellants." 15. We further find that in the case of Bhilwara Spinners Ltd. (supra), this Tribunal observed as under:....
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.... of the Cenvat Credit Rules, 2004 in respect of the exports. 7. In the case of Videocon International v. Commissioner of Customs, Mumbai (supra) cited by the Revenue the exports had been made under value based Advance Licence Scheme of exemption notification No. 203/92-Cus., dated 19-5-1992 where the benefit of duty exemption under the notification was subject to the condition that the export obligations should have been discharged by exporting the goods manufactured in India in respect of which no input duty credit has been availed and in respect of the exports under value based Advance Licence Scheme, the appellant, as a part of Amnesty Scheme announced by the Government of India, had reversed the Modvat so as to avoid the denial of benefit of duty exemption notification No. 203/92-Customs, but still subsequently, they claimed cash refund of the Modvat credit in respect of the goods exported, which was denied. It is in this background that the Tribunal held that when the appellant have taken the benefit of duty exemption under Notification No. 203/92-Cus., after reversing the input duty credit, they cannot avail the cash refund of the Modvat credit, which had already been revers....
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....by the Revenue is rejected." In view of the above, it is clear that to claim refund under Rule 5 of CENVAT Credit Rules, 2004 on export of the finished goods, the credit is accumulated and the same cannot be utilised otherwise. We also find that as per the provisions of Foreign Trade Policy post 1997, no double benefit is available. 17. We further find that in the case of Motherson Sumi Electric Wire (supra), this Tribunal held that no one-to-one correlation was required between the inputs and exported goods. Therefore, appellants are entitled for such credit accumulated from time to time, which has been affirmed by the Hon'ble Karnataka High Court. We also find that while sanctioning the refund claim the Adjudicating Authority has examined the whole issue and recorded the finding as under:- "The Adjudicating Authority allowed the refund claims holding that there was huge opening balance of unutilized credit of Rs. 50.51 crores in the cenvat account; that there was accumulation of further credit of Rs. 11.34 crores, during the disputed two quarters; that out of the said balance credit, the assessee could utilize only Rs. 16.82 crores during the disputed qu....