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2014 (8) TMI 705 - AT - Central ExciseCenvat Credit - Export of M.S. Billets as such to Nepal - Billets were not exported directly from the factory of manufacturer - procedure prescribed under Notification 45/2001-NT for export under bond to Nepal was not followed by the Applicant - penalty under Rule 15 (2) of CENVAT Credit Rules, 2004 and Rule 25 of Central Excise Rules, 2002 read with Section 11AC of Central Excise Act, 1944 - Held that:- there are various provisions in the Central Excise Act and Rules made thereunder to facilitate the export. The different procedures prescribed in this regard are however mutually exclusive and covered different exigencies. In case of export to Nepal, rebate shall be granted to his Majesty, Govt. of Nepal as per conditions of the Notification No.40/2001. Both these rules are silent regarding availment of Cenvat credit which is governed by the provisions erstwhile Modvat Rules. CENVAT Credit Rules provide for taking the credit on inputs/input services used in or in relation to manufacture of final products for payment of duty on such final products. Board issued the impugned Circular to bring the export under 'claim of rebate' and 'export under Bond' at par. In case of export of goods to Nepal under the claims of rebate, the exporter is not allowed any rebate and therefore if such exporters are allowed to utilize the credit availed on the inputs exported under Bond to Nepal this would result into a dichotomy wherein the exporters who opt for export to Nepal under bond procedure could be put to advantage over the exporters opting for export to Nepal under claims of rebate. Under these circumstances Indo-Nepal Treaty would be redundant. - in case of export to Nepal, Board's Circular is of no help to the Applicant as implementation of the said Circular would unduly enrich those who opt for export under bond over those who export under bond - prima facie applicant is not able to make out a case for full waiver of pre deposit. - stay granted partly.
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