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2012 (6) TMI 753 - AT - Central ExciseAvailment of CENVAT Credit - Revenue denied credit on the ground that the exported material is otherwise duty-free - Held that:- It is the undisputed policy of the Government not to burden the export goods with domestic taxes as has been noted in various decisions of the Tribunal. The reasons are obvious. We do not want to make domestically produced goods, when exported to foreign market, to become uncompetitive. Secondly, no country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Each country either exempts such taxes in respect of export goods, including taxes relating to inputs used in the export goods, or there are alternative schemes for providing rebate, drawback of duties suffered by export goods. India is no exception as we also have similar schemes. There are also schemes making available duty-free goods and services for export production - allowing of input duty credit would free the export goods from domestic taxes. Hence, the impugned order is set aside - Decided in favour of assessee.
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