2017 (5) TMI 1080

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....disposal even in the absence of any representation from respondent. 2. Heard the submissions made by Ld. Department representative. It is his submission that the issue involved in the case is regarding refund of unutilised Cenvat credit which was availed on inputs and input services and finished goods  cleared to 100% EOU and under ARE-3 and CT-3s issued by Department. He has submitted that the provisions of Rule-5 of Cenvat Credit Rules and Rule 19 of Central Excise Rules, 2002 will apply if there are physical exports only and there is no scope of utilising Cenvat Credit for payment of duty on home clearances, in this case, the goods were cleared to other EOUs which is not the same as physical exports. 3. On consideration of the sub....

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....urview of Rule 5 of CCR and the Notification issued there under for the material period. When the deemed exports would be eligible to be considered for working out the Net Foreign Exchange Earning (NFEE) and for all other export benefits, I do not see any reason why the deemed exportsshould be ignored for the purpose of the refund under Rule 5 of CCR read with Notification issued there under. I find that there is force in the contention of the Appellants that they are eligible for refund of accumulated CENVAT credit on inputs under Rule 5 of CCR with regard to the deemed exports. It has been held in a catena of decisions that the supplies to 100% EOU being deemed exports were also eligible for refund of the accumulated CENVAT credit in te....

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....orts clearance by 100% EOU to another ELU Revenues case that refund admissible only on physical exports and reliance on Boards circular No. 220/54/96-CX, dated 04.06.1996 not sustainable Apex Court in number of decision upholding Tribunals view that Revenue not to dispute that for fixing DTA sales limits only physical exports and not deemed exports be considered, when DC given permission for DTA sale upto specified value Tribunal in impugned order also placed reliance on said judgments Appeal against Tribunal in Amitex Silk Mills Pvt. Ltd [2006 9194) E.L.T. 344 (Tribunal)], which also held same, pending before Apex Court issue settled and no purpose served by awaiting its outcome clearance to 100% EOU be treated as physical exports for enti....