2016 (11) TMI 1726

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..... at Credit Rules, 2004 to the application of sub-rule (1) to (4) thereof. Clearances made to SEZ are not governed by the denial provision. Appellant s submission is therefore certainly correct to say that any attempt to deny the refund of input credit shall make the services or goods exported costlier and will amount to export or deemed export of taxes which is not permitted in international trade .....

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..... t was submitted that there is an exception provided under Rule 6(6) of the Cenvat Credit Rules, 2004 to resolve the above issue. The goods supplied to SEZ come in par with the export of goods. Once the goods are not liable to tax, if otherwise attempted to be taxed denying Cenvat credit to be refunded, the cost of the goods shall undergo revision upward and will result in export of taxes which is .....

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..... as supply to SEZ domestically. Therefore, denial of refund to the appellant by the application of Rule 5 of Cenvat Credit Rules, 2004 is not reasonable, for which, the order of the authority below is set aside and appeal is allowed. The authority below granting refund shall act in accordance with law looking to the law on limitation, if any, applicable. 6. In the result, appeal is allowed. .....

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