2017 (8) TMI 1099

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....placed reliance on the following judgments: (a) Essel Propack Ltd Vs. Commissioner of Central Excise, Thane[2014(314) ELT 584(Tri. Mumbai)] (b) Glass and Ceramic Decorators Vs. Commr. Of C. Ex. Mumbai-I[2014(305) ELT 133(Tri. Mumbai)] (c) Commissioner of Central Excise, Pune-II Vs. Suessan Asia Pvt Ltd[2016(335) ELT 104(Tri. Mumbai)] He referred to para 3.4 of Chapter 5 of Central Excise Manual which permits clearance of capital goods under bond. 3. On the other hand, Shri. A.B. Kulgod, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that there is no provision either in Cenvat credit rules or Central Excise rules to clear the used capital goods, on which credit....

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....r a manufacturer to remove the inputs or capital goods for expert under bond within the explanation referred to above. In the case of Videocon International Ltd. (supra) this Tribunal considered the issue and held that in such case the appellant is not required to reverse CENVAT credit availed on the capital goods. Therefore, following the ratio of the decision in the case of Videocon International Ltd. (supra), we set aside the impugned order holding that the appellant is not required to reverse the credit at the time of exporting of the goods under bond. Glass and Ceramic Decorators 5.1 It is not in dispute that the capital goods imported by the appellant have been exported. On export of capital goods, the appellant is eligible for reb....

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....efore either export shall be made under claim for rebate or under bond. Para 3.4 of Instruction Manual is very clear which is reproduced below : 3.4 There is no bar for a manufacturer to remove the inputs or capital goods as such for export under bond. From the above para 3.4 which is pari materia to the provisions of erstwhile Rule 57AB, the export of capital goods under bond is permissible. Ld. Commissioner in the impugned order correctly held as under: 4. I have carefully gone through the case records and the various submissions made by the appellant. The issue involved for consideration in this case is whether Cenvat credit is required to be reversed at the time of clearance of imported and used capital goods at the time of export ....