2016 (8) TMI 196

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....both these appeals is the same, therefore, both these appeals are being taken for disposal under this common order. 2. Sri S.Mukhopadhyay, Suptd.(AR) appearing on behalf of the Revenue submitted that the issue involved is regarding refund of unutilized credit under Rule 5 of the Cenvat Credit Rules read with Notification No.05/2006-CE(NT) dated 14.03.006 issued under Rule 5 of the Cenvat Credit Rules, 2004. Ld. AR argued that as per Clause-4 of the Notification No. 05/2006-CE(NT) dated 14.03.006 only that credit unutilized with respect to inputs used in the finished goods exported during the relevant quarter has only to be taken into consideration and accumulated unutilized credit in the beginning of that quarter has no relevance. Ld. AR....

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....Authority are correct and need no interference. 4. Heard both sides and perused the case records. 5. The issue involved in the present proceedings is whether refund of unutilized Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004; read with Notification No. 05/2006-CE(NT) dated 14.03.006; has been correctly decided in favour of the respondent by the First Appellate Authority. It is the case of the Revenue that appellant is manufacturing goods both for domestic purposes as well as for exports. Appellant is taking Cenvat credit with respect to all the inputs used in the manufacturing of indigenously cleared finished goods as well as for exports. There is always  unutilized Cenvat credit in the RG 23A Part-II of the appellant a....

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....- Motherson Sumi Electric Wires (Supra) clearly held that the conditions of Rule-5 of the Cenvat Credit Rules 2004, read with the relevant notification were fulfilled. In the present case the conditions of Notification No. 05/2006-CE(NT) dated 14.03.006 are not fulfilled.  The said condition under Notification No. 05/2006-CE(NT) dated 14.03.006 is reproduced below: "4. The refund is allowed only in those circumstances where a manufacturer or provider of output service is not in a position to utilize the input credit or input service credit allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates (hereinafter referred to as  the given period )" 6.1. In the pres....