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2024 (5) TMI 124
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....072/- being the CENVAT Credit involved in the export of goods during the period January to March, 2009. The said refund application was examined by the jurisdictional Assistant Commissioner being the original authority and in exercise of the powers vested with him under Section 11B of the Central Excise Act, 1944, he had sanctioned refund of Rs.4,22,558/- out of the total refund claim filed for Rs.13,37,072/- by passing an Order-in-Original dated 19.03.2010. The gist of the findings by the said Original authority is extracted and given below: "14. I find that the cenvat credit availed in respect of input, as verified and certified by Range Superintendent, Range - III, Kalyan IV Division, vide verification report dated 10.03.2010, on verification of the records maintained by the claimant for the quarter January, 2009 to March, 2009, is as under:- (A) Input Credit: Cenvat Credit availed during the quarter January, 2009 to March, 2009: Rs.23,32,780/- Less Credit utilized during the quarter January, 2009 to March, 2009: Rs.19,87,976/- Total Cenvat Credit in balance at the end of 31st March, 2009: Rs.3,44,804/- (B) Input Service Credit: &nbs....
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....claim of the appellant under Rule 5 is only in respect of goods exported under UT-1. Under the provision of Rule 5 and Notification issued thereunder, there is no restriction that entire export should be made under a particular scheme either under Rule 5 of drawback or rebate. Therefore, the part of the consignment can be cleared under rebate, drawback or claim of refund under UT-1, therefore when the goods have been exported under UT-1 irrespective of the fact that other consignment were cleared under rebate or drawback, refund under Rule 5 in respect of goods cleared under UT-1 cannot be denied. I find that the adjudicating authority had not correctly quantified the amount of refund on the input used in the goods exported under UT-1. Therefore the matter needs to be remanded to the adjudicating authority for correct quantification of the refund amount. I, therefore, set aside the impugned order and remand the matter to the original adjudicating authority..." 2.3 In accordance with the remand order of the Tribunal, the Deputy Commissioner, Central Excise, Kalyan-IV Division, adjudicated the case vide Order-in-Original dated 07.06.2017 by ordering sanction of refund ofRs.77,754/....
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....of goods nor the original documents and relevant extracts of the records maintained under the Central Excise Rules, 2002 and the CENVAT Credit Rules. The assessee are claiming refund of the accumulated credit in respect of utilized inputs in relation to the goods exported and it is for them to establish the nexus and to provide the relevant data so as to arrive at quantification of refund. In the absence of the relevant information, I hold that the assessee is not eligible for any refund of accumulated credit in respect of utilized inputs in relation to the goods exported. 10. The assessee was requested to furnish the requisite documents initially vide letter dated 20.10.2016 and subsequently their request for some more time for submitting the documents during the course of personal hearing on 01.12.2016 was also acceded to. However, despite continuous persuasion by the jurisdictional Range Superintendent in writing and orally on telephone the assessee has not submitted any proper reasoning with documentary evidence in respect of the conditions laid down under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification no. 05/2006-C.E. (N.T.) dated 14.03.2006 for quanti....
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....ase is determination of the eligible amount of refund of CENVAT credit of inputs and/or input services used in the export of goods or services as provided under Rule 5 of CENVAT Credit Rules, 2004 read that Notification No. 5/2006-C.E. (N.T) dated 14.03.2006, which is refundable to the appellant. The period of dispute in the present case is January, 2009 to March, 2009. The relevant legal provisions of the said Rules and notification are extracted and provided as follows: "Refund of CENVAT Credit. 5. (1) A manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking, or a service provider who provides an output service which is exported without payment of service tax, shall be allowed refund of CENVAT credit as determined by the following formula subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette: Refund amount = (Export turnover of goods+ Export turnover of services) Total turnover x Net CENVAT credit Where,- (A) "Refund amount" means the maximum refund that is admissible; (B) ....
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....o a place outside India. ] (2) "relevant period" means the period for which the claim is filed. Explanation 2.-For the purposes of this rule, the value of services, shall be determined in the same manner as the value for the purposes of sub-rules (3) and (3A) of rule 6 is determined.] 5/2006-C.E. (N.T.) Refund of Cenvat credit - Procedure In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the 'said rules'), and in supercession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 11/2002-Central Excise (N.T.), dated 1st March, 2002, published in the Gazette of India Extraordinary, vide number G.S.R. 150(E), dated 1st March, 2002, the Central Government hereby directs that refund of CENVAT credit shall be allowed in respect of : (a) input or input service used in the manufacture of final product which is cleared for export under bond or letter of undertaking; (b) input or input service used in providing output service which has been exported without payment of service tax, subject to safeguards, conditions and l....
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.... input service credit under Rule 5 of the CENVAT Credit Rules, during the quarter GBP 100*250/500 i.e. Rs. 50. Explanation : For the purposes of condition no. 5, - 1. "Export turnover" shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule. 2. "Total turnover" means the sum total of the value of, - (a) all output services and exempted services provided, including value of services exported; (b) all excisable and non excisable goods cleared, including the value of goods exported; (c) The value of bought out goods sold, during the given period. 6. The application in Form A, along with the prescribed enclosures and the relevant extracts of the records maintained under the Central Excise Rules, 2002, CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994, in original, are filed with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, before the expiry of the period specified in section 11B of the Central Excise Act, 1944 (1 of 1944)....
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....) The value of all output services and exempted services provided, including value of services exported. (ii) The value of all excisable and non excisable goods cleared, including the value of goods exported. (iii) The value of bought out goods sold. (D) ENCLOSURES :- (i) Copy of the relevant Shipping Bills or Bills of Export duly certified by the officer of customs to the effect that the goods have in fact been exported (in case of final products). (ii) Copy of invoices. (iii) Certificate from the bank certifying realization of export proceeds (in case of export of output services). (iv) Relevant extracts of the records maintained under the Central Excise Rules, 2002, the CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994, as the case may be, evidencing taking of CENVAT credit, utilization of such credit in payment of excise duty or service tax and the balance unutilized credit during the given period. (E) AMOUNT OF REFUND CLAIMED :- Rs. (in figures and in words)_____________________________ I/we opt for/do not opt for the facility of the refund amount being credited directly in my/our....
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....Received Cheque No. ________________ dated ________________ for Rs. _____________________ (Rs.______________). Dated_________________ Signature of claimant." 7. On careful examination of the Rule 5of the CENVAT Credit Rules, 2004 read with Notification No. 5/2006-C.E. (N.T) dated 14.03.2006, issued in exercise the said Rule 5, it transpires that the following are the legal position in allowing refund of Cenvat credit of inputs or inputs services involved in export of final product or intermediate product or output service: (i) the final product or intermediate product or output service shall be exported without payment of excise duty or service tax under a bond or Letter Undertaking (LUT); (ii) Cenvat credit refundable shall be determined as per the formula prescribed; (iii) Refund of Cenvat credit shall be subject to prescribed procedure, safeguards, conditions and limitations, as provided by Notification No.5/2006-C.E. (N.T) dated 14.03.2006 (a) Claim for refund of Cenvat credit shall be submitted in prescribed form 'A' for any quarter, only once; (b) Average export clearances in the previous quarter shall be 50% o....
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....ted to the extent of export that had taken place without payment of duty under Bond/LUT. The said formula has been applied in the present case and the refund is restricted to the extent of export that had actually taken place, and thus this condition has also been fulfilled in the present case. 8.3 As regards 7(iii) in respect of the conditions, procedure to be followed, in the present case it is very clearly recorded in paragraph 8 of the Order-in- Original dated 19.03.2010 that a refund application has been filed by the appellant along with required documents which was verified, as follows: "The claim is filed within the period specified under Section 11B of the Central Excise Act, 1944. As per the provisions of Notification 05/2006- C.E.(N.T.) dated 14.03.2006, the claim of such refund are submitted not more than once for any quarter in a calendar year. The claimant has submitted all the required documents in support of their claims for refund as specified in the said notification and the same have been verified by the concerned Range Superintendent and recommended for its favourable consideration." 8.4 Further, in respect of condition at 7(iv), it is found that t....
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....e preceding quarter i.e. October, 2008 to December, 2008. In percentage terms, the value of clearances for Export under UT-1 during the relevant period works out to 51.65% on the total value of clearances which satisfies the 50% limit prescribed by the statute as above and therefore, the refund claim is admissible on this count. 9. Further, I find that the assessee has availed the input services credit amounting to Rs. 1,49,503/- during the period January, 2009 to March, 2009. As per condition No.5 of the Appendix to the said Notfn. No. 5/2006- C.E. (NT) dated 14.03.2006, as amended, the refund of unutilized input service credit will be restricted to the extent of the ratio of export turnover to the total turnover for the given period to which the claim relates i.e. Total CENVAT credit taken on input services during the given period x export turnover Maximum refund = ------------------------------------------------------------------------ Total Turnover 1,49,503 X 2,93,37,153 =------------------------------------------------------------------------------------- 5,64,08,820 =77,753.66 rounded off to Rs. 77,754/-" 9. In view of the detailed e....