2008 (1) TMI 210

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....eir final product. Stainless steel utensils were exempted from payment of Central Excise duty vide Notification No. 10/2003 dated 1.3.2003. The appellants made export of stainless steel utensils and filed a refund claim in respect of credit availed on inputs used in the manufacture of goods exported. A show cause notice dated 30.8.2004 was issued for denial of credit on the ground that as the exported goods were exempted from payment of duty and the appellants were not entitled for any credit and credit in their CENVAT Credit w.e.f. 1.3.2003 will lapse, hence, no refund. The appellants replied the show cause notice. The adjudicating authority rejected the refund claim. The appellants filed appeal against the adjudication order and the Commi....

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....ave not produced these documents is factually incorrect and is not sustainable. The contention is also that in the show cause notice ground for rejection of refund claim was that as goods were exempted from payment of duty the appellants are not entitled for refund and on the ground that procedure is not followed. 6. Contention of Revenue is that the Commissioner (Appeals) in the impugned order held that proof of export have not been produced and the production of ARE-1 in reply to show cause notice is only an after thought. Therefore, refund was rightly denied. Contention is that onus is on the appellants to prove that the goods in respect of which refund claim has been filed were exported, and the appellant failed to do so, therefore, ....

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....lowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification: Provided that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims a rebate of duty under the Central Excise Rules, 2002, in respect of such duty. Further, I find that Rule 6 of Rules provides that where a manufacturer is manufacturing dutiable and exempted goods both, he has to maintain separate records regarding common inputs used in manufacture of both the goods and the manufacturer is not entitled for credit in respect of inputs used in exempted good....