2018 (7) TMI 1366

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lant is a 100% EOU. For manufacture of goods in the EOU, the appellant procured various inputs on payment of duty and availed cenvat credit of duty paid on such goods. The dispute pertains to the refund claims made by the appellant under Rule 5 of the Cenvat Credit Rules, 2004. Part of the refund claims were allowed and rest rejected. The rejection was on the ground that certain inputs were procured by the appellant on payment of duty, when the same goods were covered under Notification No. 22/2003 dated 31.03.2003 and have been procured without payment of any duty. The Department cited the provision of Section 5A(1A) of the Central Excise Act, 1944 and took the view that the duty paid on goods which were entitled to exemption in terms of N....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cation No. 8/2005-ST. 4. Ld. AR appearing for the Revenue justified the impugned order. He brought to my notice the observation of the Commissioner (Appeals) in paras 3 and 5.3 of the Order-in-Appeal No. 32/2018 in which she observed that the appellant has challenged the order before her only on the ground that the refund was rejected on altogether different ground than those mentioned in the show cause notice. He further submitted that the Commissioner (Appeals) has not examined the issue on merit and hence appellant is not entitled to argue the merits of the case in the present appeal. He also submitted that the decision of the Hon'ble Karnataka High Court is not applicable to the facts of the present case, since it has been passed on ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that the duty paid on inputs cannot be allowed as cenvat credit, in view of Notification No. 22/2003. 8. Section 5A(1A) is applicable to those cases where the exemption is granted absolutely. The CBEC has explained the above provisions by issue of Circular dated 26.11.2010. The circular has referred to the Notification No. 29/2004 dated 09.07.2004 which has granted exemption to various textile articles. It has been explained that the manufacturer cannot opt to pay duty under the above notification and he cannot avail cenvat credit of duty paid on inputs. 9. A reference to the Notification No. 29/2004 reveals that it grants concessional rate of duty unconditionally and absolutely. The circular has clarified that the provisions of Sect....