2007 (8) TMI 240

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....e Commissioner of Central Excise (Appeals), Salem.  In the impugned order, the Commissioner has vacated the order of the original authority disallowing CENVAT credit of Rs.1,90,107/- availed by the respondents and the demand of interest of Rs.318/- on the irregular CENVAT credit availed by the respondents. The facts of the case are that M/s. V Tex Garments, the respondents herein, had procure....

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....that A.R.E.2 form contained a certification to the effect that the exporter had not availed facility of Cenvat Credit Rules, 2001. This requirement evidenced that manufacturers availing the facility of procuring excisable goods in terms of Notification No.43/01-CE were barred from availing CENVAT credit of duty paid on the inputs.  In the impugned order, the Commissioner (Appeals) found that ....

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.... was under claim for rebate. There was nothing in the relevant rules or procedure which lays down that credit should not be taken of duty paid on inputs which were used in the  manufacture of goods exported under Rule 19 of the Central Excise Rules read with Notification No.43/01-CE dated 26.6.2001. 2. In the appeal filed by the Revenue against the impugned order, the major ground taken is....

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....ailing the facility under both Rule 18 & 19. 3. Heard both sides.  The Commissioner found that the relevant Rules/Notification governing procurement of inputs without payment of duty for export under bond did not prohibit use of duty paid goods also.  The original authority had denied the CENVAT credit availed solely on the basis of the proforma of the A.R.E.2 which contained certific....