2018 (1) TMI 203

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....ower service availed by them on reverse charge mechanism. He pointed that a show-cause notice was issued to them asking them to show-cause why refund should not be rejected on the following grounds: i) The assessee manufacturer has not cleared the product for export under bond or letter of undertaking as stated in Rule 5 of the Cenvat Credit Rules 2004. ii) The assessee manufactured the excisable goods which attract nil rate of duty as per the first schedule to the Central Excise Tariff Act, 1985. They have also not provided any taxable output services. Hence they are not eligible to take cenvat credit on input or input services used for manufacture of the said exempted goods as per the provisions of Rule 6 of the Cenvat Credit Rules 2004....

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....iders. He further argued that the Bombay High Court in the case of Repro India Ltd - 2009 (235) ELT 614 (Bom) and Himachal Pradesh High Court in Dhrish Shoes Ltd. - 2010 (254) ELT 417 (HP) have held that cenvat credit is available in respect of input/ input service used in the manufacture of exempted goods if they are exported. He relied on Rule 6(6)(v) of the Cenvat Credit Rules. 5. Ld. AR relies on the impugned order. 6. I have gone through the rival submissions. 7. I find that these are the proceedings on the refund claim filed by the appellant under Rule 5 of Cenvat Credit Rules 2004. The show-cause notice invokes specific grounds listed in para 3 above. The impugned order observes as follows:- "There are two basic questions that ne....