TMI Blog2007 (11) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared the inputs/capital goods against CT-2/CT-3 without payment of duty for onward export. It is also un disputed that that respondent is a manufacturer. The adjudicating authority dropped the proceedings initiated by the show cause notice relying upon the various Board's Circular and provisions of Notification No. 43/2001 CE(NT) dt. 26.1.2001. Against such dropping of the proceedings revenue filed an appeal to the Ld. Commissioner (Appeals). The Ld. Commissioner (Appeals) in its Order-in-Appeal held as under: I have carefully gone through the case records and the various submissions made by the appellants. This is a departmental appeal against the impugned order under which the case proceedings initiated vide show cause cum de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts and capital goods cab be removed for export under Bond without payment duty; that this is further confirmed in Chapter 5 para 3.4. of the CBEC's Excise Manual of Supplementary Instructions, 2001. The issue for consideration in the instant case is when inputs on which cenvat credit has been taken are removed as such against CT-2/CT-3 without payment of duty for onward export, whether the manufacturer, availing Cenvat credit of Countervailing duty paid on imported input is required to pay an amount equal to the credit of duty availed on such inputs in terms of Rule 3(4) of the Cenvat Credit Rules,2002. In this regard, it is observed that the Board Circular No. 792/25/2004. CX dated 02.06.2004 has clarified that the goods can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Rules, 2002. In this regard, it is also observed that there is no dispute regarding the duty paid character of inputs, regarding the fact the goods sere actually exported under Central Excise Rules 2002. As per the above said Notification, Export Oriented Units are entitled to receive the inputs without payment of duty. The supply of input was also made by the respondent sin terms of CT-2/CT-3. In such situation, otherwise they could have charged and recovered the central Excise duty from the 100% EOU, who purchased the goods since Central Excise duty on the input is already paid by them to the supplier. The export incentive availed by the respondents in the form of Cenvat Credit on the inputs cleared as such without payment of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Board of Excise and Customs. It is also to be noted that if the very same capital goods/inputs are exported by the respondent themselves, the respondents would be eligible for availement of rebate of duty paid on such inputs. If that be so, the findings of both the lower authorities are correct. Further it is noticed that identical issue was before the Tribunal in the case of Lakshmi Synthetic Machinery Mnfrs. Ltd. vs. C.C.E. Coimbatore as reported at 2005 (184) E.L.T. 109 (Tri.Chennai)] wherein the Tribunal held as under: Cenvat/Modvat-Inputs supplied without payment of duty to 100% EOU in terms of CT-3 certificate-Credit of duty paid on such inputs not to be denied-Rule 3 and 44 of Cenvat Credit Rules, 2004 . 3. As such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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