2009 (2) TMI 190

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.... 2. We heard both sides. 3. Since the issue involved in all these appeals is one and, the same, we are passing a common order. The appellants obtained certain inputs took Cenvat credit and manufactured the final products. The final products were cleared on payment of duty by utilizing the Cenvat credit and they were exported under the Duty Free Import Authorization Scheme (DFIA). Later, the appellants claimed rebate of duty under Rule 18 of the Central Excise Rules, 2002 and the same was sanctioned under Notification No. 19/2004-C.E. (NT.). The said exports were taken into account for discharge of export obligation under the DFIA Scheme. Revenue initiated proceedings against the appellants on the ground that rebate sanctioned was erron....

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.... Trade Policy 2004-2009, no CENVAT credit facility shall be available for inputs either imported or procured indigenously against the Authorization'. The learned Advocate clarified that in the present cases, the indigenous inputs were not procured against the authorization of the DGFT but were procured in the normal course. Therefore, the above objection is not valid. Further, he invited our attention to para (v) of the Notification No. 40/2006-Cus., dated 1-5-2006 and stated that in terms of the said Notification, only the rebate of duty paid on the materials used in the manufacture of resultant product should not be claimed and also Cenvat credit in respect of materials imported/procured against the authorization should not be availed, in....

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....ctured in India which are specified in the said authorization and in respect of which facility under rule 18 (rebate of duty paid on materials used in the manufacture    of resultant product) or sub-rule (2) of Rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 in respect of materials imported / procured against the said authorisation has not been availed: Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to the exporter in terms of paragraph 4.1.3 (ii) of the Policy." 6.2 A careful reading of the provision shows clearly that the rebate on the inputs procured indigenously against authorization should no....