2017 (10) TMI 129

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.... Notification No.36/96-Cus (N.T) dated 23.07.96 as amended & Notification No.25/09-Cus dated 28.02.99 by following the procedure prescribed under Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. The appellant had availed CENVAT credit of the CVD paid on these imported inputs. During the period May 2007 to December 2007, the appellant had exported some of the above inputs 'as such', without using the inputs for the manufacture of final products, namely, Relays. Department took the view that appellants were not eligible to avail cenvat credit in respect of the imported inputs which had been re-exported. Accordingly, show cause notice dt. 13.05.2008 was issued to them inter alia pro....

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....y rely upon the ratio of the following judgements : (a) Zydex Industries Vs CCE Vadodara - 2007 (219) ELT 602 9Tri.-Ahmd.) (b) MRF Ltd. Vs CCE & ST LTU Chennai - 2016 (337) ELT 583 (Tri.-Chennai) 3. On the other hand, Ld. A.R Shri K.P. Muralidharan draws our attention to the definition of "input" in Rule 2(k) of Cenvat Credit Rules, 2004 and the provisions relating to removal "as such" of the inputs in Rule 3 (5) of CCR 2004 relied upon by the Commissioner (Appeals) in the impugned order, based on which the said authority has correctly concluded that "as the balance materials were not able to be used in the manufacture of Relays, the same cannot be construed as 'inputs' as per the above definition". Ld. A.R draw....

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....al duty of customs of which cenvat credit had been availed, there would have been definitely a requirement for reversing the cenvat credit since that would otherwise create an unintended doubt benefit. By the same token, when the appellants have not claimed such refund or drawback of the duties suffered post-reexport, it would not be just and fair to deny the cenvat credit in respect of the additional duty of customs, which they have already suffered. This is precisely the intention of the Cenvat Credit scheme, that is to allow availment of credit of duty to the extent that has been suffered by the assessee. By denying the availment of cenvat credit on the CVD suffered appellant is being put to put to unintended double loss. 7. We also f....