2014 (1) TMI 1778 - AT - Central Excise

Clearance made by one 100% EOU to another 100% EOU - whether the respondent is eligible for refund of accumulated CENVAT credit arising because of deemed exports made to 100% EOUs within India? - Held that - the issue is squarely covered by the decision of the Hon ble High Court of Gujarat in the case of CCE Vs Shilpa Copper Wire Industries 2010 (2) TMI 711 - GUJARAT HIGH COURT where it was held that the deemed exports have to be treated at par with physical exports for granting refunds of accumulated credit under N/N. 5/2006 - appeal rejected - decided in favor of respondent.

Summary

The Appellate Tribunal CESTAT Bangalore ruled that the respondent, a 100% EOU, is eligible for refund of accumulated CENVAT credit due to deemed exports made to other 100% EOUs within India. The decision was based on a previous ruling by the High Court of Gujarat treating deemed exports at par with physical exports for refund purposes under Notification No. 5/2006. Consequently, both appeals were rejected.