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2013 (7) TMI 563 - AT - Central ExciseCenvat Credit - removal of inputs from DTA to SEZ without reversing credit - Rule 3(5) of Cenvat Credit Rules, 2004 - Respondents are manufacturers of excisable goods namely, brake linings, clutch facings and disc braking pads. They take benefit of Cenvat credit on inputs used in the manufacture of these excisable products – Respondents removed certain inputs on which Cenvat credit was taken to another unit of theirs situated in Mahindra Special Economic Zone without reversing the credit taken at the time of receipt of the inputs in the factory – Held that:- For the purpose of accounting the goods on which Cenvat credit is taken, CCR has to be considered as a complete code in itself and since the said rules do not envisage export of inputs after taking credit, Rule 3 (5) has to be necessarily complied with. Such an approach only is consistent with the decision of the Larger Bench of Tribunal in Lakhmi Automatic Loom Works (Ltd)[2008 (10) TMI 57 - CESTAT CHENNAI].In the said decision it was held that inputs cannot be removed from one EOU to another without payment of duty considering it as deemed export – Moreover, Rule 18 and 19 would apply only when goods manufactured in a factory are exported and not when inputs on which credit is taken are exported – Decided in favor of Revenue. Penalty – Held that:- No intention on the part of the respondent to evade payment of duty is established – No penalty levied – Decided against the Revenue.
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