2026 (6) TMI 76

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....angeetha Buvan Chander V. for Mr. A.P. Ravi For the Respondent(s) : Mr. T. Ramesh Kutty Senior Panel Counsel (for R4 & R5), Mrs. Revathy Manivannan (for R1, R2, R3 & R6) ORDER The present writ petition is filed challenging the impugned order in No.104-105/23-Cus dated 20.03.2023, whereby petitioner's claim for higher rate of duty drawback at 7.5%/ 7.1% was rejected by the revisional authority on the premise that petitioner had availed CENVAT credit. 2. Petitioner is a manufacturer of netted garments. Petitioner sells the manufactured netted garments in the domestic market while exporting a portion of the goods so manufactured. During April 2011 to October 2012, petitioner exported netted garments under the Drawback scheme on....

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....   Drawback rate Drawback cap per unit in Rs. Drawback rate Drawback cap per unit in Rs. 1 2 3 4 5 6 7 6109 T-shirts, singlets and other vests, knitted or crocheted           ... ... ... .. .. ... .... 6110 Jerseys, pullovers, cardigans, waistcoats an similar articles, knitted or crocheted           611001 Of cotton Piece 7.1% 65 2.2% 8.4 3.2. Thereafter, show cause notice came to be issued proposing to reject the petitioner's claim of higher rate of duty drawback only on the premise that CENVAT credit had been availed by the petitioner while rejecting the petition....

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....upon: i) Commissioner of Central Excise and Customs vs. Precot Meridian Ltd., reported in 2015 (325) E.L.T. 234 (S.C.): "3. We not that five-Member Bench of the Tribunal in the case of 'Franco Italian Co.Pvt. Ltd. vs. Commissioner' [2000 (120) E.L.T. 792 (t.LB) had taken the view that even if the MODVAT credit was utilised but, thereafter, refunded, it would amount to not utilising the said MODVAT credit. Same view has been taken by the High Court of Allahabad in "Hello Minerals Water (P) Ltd. vs. Union of India" [2004 (174) E.L.T. 422(All.)]. 4. On a specific query put by the Court, we were informed that as far as the aforesaid two judgments are concerned, they were accepted by the Department and no appeal was fi....

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....ufacture of the final products, provided that credit of duty paid on the inputs used in such exempted products is debited in the credit account before the removal of such exempted final products. 8. The circular deals with a case where the manufacturer produces dutiable final products and also final products which are exempt from duty and it is not reasonably possible to segregate inputs utilised in manufacture of the dutiable final products from the final products which are exempt from duty. In such a case, the manufacturer may take credit of duty paid on all the inputs used in the manufacture of final products on which duty will have to be paid. This can be done only if the credit of duty paid on the inputs used in the exempted p....