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2012 (9) TMI 873 - AT - Central ExciseDuty demand - Benefit of Exemption Notification No. 67/95-C.E. - Violation of Conditions - Held that:- In this case none of the conditions of Notification are satisfied, as the exempt goods have simply been cleared into Domestic Tariff Area, by availing full duty exemption - Another plea of the appellants is that even if the duty is charged on the dyed yarn, the same would be admissible as Cenvat credit as dyed yarn was used for manufacture of cotton rugs which had been exported out of India. We do not agree with this plea of the Appellants, as this plea would be acceptable only when the exports of final products had been made under bond in terms of the provisions of the Rule 19 of Central Excise Rules, 2002. In this case the cotton rugs have been cleared into Domestic Tariff area by availing full duty exemption and it is not the claim of the Appellants that the same had been exported under bond directly from the factory. The goods initially cleared from the factory for home consumption and thereafter exported out of India cannot be equated with the goods exported directly from the factory under bond in terms of provision of Rule 19 of Central Excise Rules. In view of this, the Appellant’s plea that if the duty is charged on dyed cotton yarn its Cenvat credit would be available to the Appellant, which would be refundable to them under Rule 5 of the Cenvat Credit Rules, is not acceptable -
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