TaxTMI 
TaxTMI 
2024 (5) TMI 932
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....Briefly stated, the facts of the case are that the Appellant is engaged in manufacture of Menthol Crystals, Dementholised Peppermint Oil, Peppermint Oil etc. falling under chapter 29, 30 and 33 of Central Excise Tariff. Most of their sales are for export to countries like France, USA, UK etc. In terms of Central Excise Notification No.12/2012 dated 17-03-12, all the final products of the Appellant became exempted from payment of duty. Appellant filed refund claim for Rs.4,00,278/- claiming refund of accumulated Cenvat Credit for the period from April, 2017 to June, 2017 under Rule 5 of Cenvat Credit Rules, 2004 CCR, 2004 read with Notification No.27/2012-CE dated 18-06-12. The said refund claim pertained to that portion of Cenvat Credit whi....
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....wing decisions : - (a) Jolly Board Ltd. vs. CCE reported in 2015 (321) E.L.T. 502. (b) Jobelle vs. CCE reported in 2006 (203) E.L.T. 627. (c) Union of India vs. Sharp Menthol India Ltd. reported in 2011 (270) E.L.T. 212 (Bom.). (d) Commissioner of Central Excise vs. Drish Shoes Ltd. reported in 2010 (254) E.L.T. 417 (H.P.). 4. The learned Departmental Representative justified and reiterated the impugned order. 5. Heard both sides and perused the appeal records. 6. The main issue in this appeal is as to whether refund of accumulated Cenvat Credit is allowable on export of goods which are exempted from payment of duty, particularly when the same has not been exported under bond. 7. I take note of the fact that the Appellant has ....
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....s are exported on payment of duty after taking credit of duty paid on the inputs and utilizing the same, then the question of refund of input duty would not arise. But is clearly the Governments policy not to export the domestic duties, on the finished goods or on the inputs, to the International market. If refund of input duty credit is not allowed, the goods will become costly in International market and less competitive. 7. The issue came up before the Hon‟ble High Court of Bombay in Repro India Ltd. (supra) wherein the Hon‟ble High Court held that CENVAT credit used in the manufacture of final product being exported irrespective of the fact that final product are otherwise exempted by provisions of Rule 6(6)(v) of the CENV....
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....of CENVAT Credit Rules, 2002, as also 2004, reference to the relevant provisions of which has been made hereinabove, shows that CENVAT credit/refund is allowed on the inputs of all manufactured goods which are not exempt from duty, as is clear from a combined reading of Rule 3 and subrule (1) of Rule 6 of the CENVAT Credit Rules, 2002, as also the Rules of 2004, so as to avoid indirect double taxation on inputs. However, this rule is not absolute. It is subject to Exception clause, contained in Rule 6(5) of the Rules of 2002 and 6(6) of the Rules of 2004, and one of the exceptions is in respect of excisable goods, which are cleared for export under bond in terms of the provisions of Central Excise Rules, 2002. 17. Subrule (5) of Rule 6 of....
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....ch goods, if the goods are exported. Question No. 1 is answered accordingly. 21. As regards question no. 2, it is clear from a bare reading of Rule 5 of CENVAT Credit Rules, 2004 that a manufacturer, who exports the final products which are exempt from duty, can claim refund of CENVAT. So, this question is also answered against the appellant." 8. It would be clear that in the decision of the Himachal Pradesh High Court, the judgment of this Court in case of Repro India Ltd. v. Union of India reported in 2009 (235) E.L.T. 614 (Bom.) is also relied, wherein it is held that expression "excisable goods" is wider than the expression "exempted goods" as it includes both dutiable and also exempted goods. 9. It is also submitted by the lear....