2016 (6) TMI 440

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....I D.N. PANDA, JUDICIAL MEMBER AND SHRIV.PADMANABHAN, TECHNICAL MEMBER For the Petitioner : Shri M. Kannan, Advocate For the Respondent : Shri K. Veerabhadra Reddy, JC (AR) ORDER PER V. PADMANABHAN Two appeals filed by M/s.Caterpillar India Pvt. Ltd. (hereinafter known as the appellant-assessee) as well as ONE by the Revenue are being disposed of through this common order since they ....

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....vat credit. Subsequently, a portion of these inputs were cleared for export bond under Rule 19 of the Central Excise Rules, 2002. At the time of export, they did not reverse an amount equal to the cenvat credit availed. The Revenue demanded amounts equal to the credit involved in such inputs under Rule 3 (5) of Cenvat Credit Rules, 2004 which reads as follows :- "When inputs or capital go....

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....ated in the subsequent Boards circular dt.29.8.2000 which has made it clear that the appellant-assessee who takes the credit may remove the inputs/capital goods on which credit has been taken, for export under bond. These views have also been upheld by the Tribunal through several decisions. Ld. Advocate also submitted that even if duty is paid before export of these goods, the same would have....

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....he circulars of the CBEC in 1996 as well as in 2000 clearly say that the manufacturer is entitled to clear the inputs/capital goods on which credit has been taken for export without payment of duty. We also find that this aspect has also been covered by para-3.4 of the CBEC's Central Excise Manual. From the above, it is clear that the goods which are exported do not suffer the duty incidence. Keep....