2016 (3) TMI 578

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....y are manufacturers and exporters of Textile products and that they were an 100% EOU Unit till 08.02.2011. Further, the petitioner has stated that till this period no drawback was claimed on the goods exported. After becoming a DTA unit, they exported manufactured goods (Tariff Item 630101 and 630201) by utilizing the capital goods credit and input service credit earned during the non-drawback period. According to the petitioner, this input service credit was eligible under Rule 5 of the Cenvat Credit Rules, 2004. The petitioner was also granted higher rate of drawback dated 22.09.2011 since they had not availed the cenvat credit of input and input services used in manufacture of export goods as stipulated in the said notification. Subseque....

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....ot granted in rebate in cash but was ordered for re-credit in the cenvat credit account on the ground that if rebate is paid in cash, the same would lead to doubt benefit for the reason that the drawback availed on the customs, central excise and service tax portions. 4. The petitioner after clearing the goods on payment of duty under claim for rebate should not have claimed drawback for the central excise and service tax portion for claiming rebate. The petitioner should have paid back the drawback portion availed before claiming rebate. However, this was not done by the petitioner. 5. Mr.V.Sundareswaran, learned Standing Counsel for the respondents submitted that the issue involved in the present Writ Petition is covered by the deci....