TaxTMI 
TaxTMI 
2017 (1) TMI 661
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....lant is a holder of In-Bond manufacture Sanction Order for the EOU operations and to carry the operation relating to processing of Iron Ore and export of the same. They are also having a Private Bonded Warehouse for storage without payment of duty as per Customs Notification 11/2005. The assessee filed a refund claim for Rs. 26,22,828/- (Rupees Twenty Six Lakhs Twenty Two Thousand Eight Hundred and Twenty Eight only) before the Assistant Commissioner, Bellary under Rule 5 of the Cenvat Credit Rules on input services like Telephone Service, Clearing and Forwarding, Business Auxiliary Service, Crushing and Screening, Technical Testing, Transport of Goods by Road up to Port, Erection and Commissioning Service which were used in or in relation ....
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....ngalore in the case of ANZ International cited supra. The relevant paras of which are reproduced herein below: "5. The appellants are 100% EOU. They received dutiable inputs from certain dealers for the manufacture of the finished products which are to be exported. They availed Cenvat credit on the duty paid inputs. Since they were not in a position to utilize the credit, they applied for refund of the Cenvat credit availed by them. The reason is that all their products were exported and there was no domestic clearance. The lower authority rejected the refund claims on the ground that in terms of sub-rule(1) of Rule 6 of CENVAT Credit Rules, the appellants could not have taken credit of duty paid on the inputs because the final products ar....
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....Hardware Technology Park of Software Technology Park; or (iv) supplied to "the United Nations or an International organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-Central Excise, dated the 28th August, 1995, number G.S R. 602(E) dated the 28th August, 1995; or (v) cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002; or (vi) gold or silver falling within Chapter 71 of the said First Schedule, arising in the course of manufacture of copper or zinc by smelting; or (vii) all goods which are exempt from the ....
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....t credit where the appellants are not able to utilize the same. In the present case, this is precisely the case. The appellants had availed Cenvat credit and they were not in a position to utilize the same for the simple reason that all the products were exported. Therefore, in terms of Rule 5 of the CENVAT Credit Rules, they are rightly entitled for the refund. The Tribunal, in the case of Sterlite Optical Technologies case (cited supra), has held that in the case of 100% EOU, prima facie, there is no bar on the avilment of Cenvat credit. Further, the Tribunal, in the case of Jobelle v. CCE (cited supra), has held that the Letter of Undertaking accepted in lieu of bond for export even though finished goods were exempted, refund of Cenvat c....
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....hen duty is paid on the inputs, then the appellants are entitled for the Cenvat credit facility under the Rules "Cenvat Credit Rules". There is nothing in the Rules which prohibits 100% EOUs availing Cenvat credit. Rule 5 of the said Rules provides for refund of Cenvat credit availed by the exporter where they do not utilize the goods as inputs for manufacture of 100% export. The case on hand is the precise case wherein the respondent has availed the Cenvat credit facility. They were not in a position to utilize the credit, they applied for refund of the Cenvat credit availed by them. The reason is that all their products were exported and there was no domestic clearance. Therefore, in terms of Rule 5 of the Rules, they are riglitiy entitle....