TMI Blog2012 (9) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20/- and the duty demanded from M/s. Sheena Industries was Rs. 19,00,874/-. 1.2 The case against M/s. Sheena Exports was adjudicated by the Commissioner Central Excise, Rohtak Vide Order-in-original dated 10-7-2007 by which he confirmed the duty demand of Rs. 51,56,820/- along with interest and imposed penalty of equal amount on the appellant. Against this order of the Commissioner Appeal No. E/2712/2007 has been filed. 1.3 The case against the M/s. Sheena Industries was adjudicated by the Joint Commissioner vide Order-in-original dated 30-11-2006 by which the duty demand of Rs. 19,00,574/- was confirmed against them along with interest and besides this, penalty of equal amount was imposed u/s 11AC of Central Excise Act. This order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is not correct. 4. Sh. Davinder Singh, the Learned Joint CDR defending the impugned order by reiterating the findings of the Commissioner in it, pleaded that since there is no dispute that dyed cotton yarn had been used in the manufacture of cotton handloom rugs which are fully exempted from duty, the dyed cotton yarn would not be exempt from duty under Notification No. 67/95-C.E., and that since the cotton handloom rugs had not been exported under bond under Rule 19 of the Central Excise Rules, the Cenvat credit of duty paid on the dyed yarn would not be available and hence, there is no question of permitting its cash refund under Rule 5 of the Cenvat Credit Rules. He therefore, pleaded that there is no infirmity in impugned orders pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above bar would not be applicable when the final products are cleared without payment of duty to - (a) a unit in the trade zone; or (b) a hundred percent Export Oriented Undertaking, or (c) a unit in an Electronic Hardware Technology Park, or (d) a unit in a Software Technology Park, or (e) under Notification No. 108/95-C.E., dated 28-8-1995 to United Nation or its Organizations or to the projects funded by the United Nation or International Organization, as this bar would also be inapplicable when the final product is cleared along with other dutiable final products manufactured out of common cenvated inputs and in respect of the exempted final product, the provisions of Rule 6 of Cenvat Credit Rules have been complied. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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