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2011 (3) TMI 1195 - AT - Central ExciseRebate claim allowed in part – Cenvat credit denied - as per dept. the bought out items have also been cleared by the appellant under the guise of manufacture of goods and these were basically in the form of spares and the assessee had availed CENVAT credit on these goods - Held that:- There is no dispute about the fact that the cost of the bought out parts have been included in the value of the machinery which has been ultimately exported and forms very much part of the machinery. Further, whatever credit has been taken, the duty liability has been discharged on a value inclusive of such bought out parts and on that ground also the demand for reversal of the CENVAT credit does not sustain. It should also be observed herein that the transaction in the instant case is that of exports and it is the avowed policy of the government to promote export by relieving the burden of taxes on the products exported and also on the products consumed in the manufacture of the goods exported. Therefore, the rules whether they be CENVAT Credit Rules or Central Excise Rules have to be read harmoniously to give effect to this objective. Thus in the instant case apart from the fact that the appellant is rightly entitled to the CENVAT credit on the goods exported, even from a policy perspective, such credit is permissible. In favour of assessee.
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