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2013 (11) TMI 1223 - AT - Central ExciseAdmissibility of Deemed credit - Cash Refund on accumulated cenvat credit under Rule 5 of Cenvat credit Rules - Clearances made for home consumption where aseessee did not utilize the credit and paid duty - Whether the deemed credit would be admissible in respect of grey fabrics purchased from the market and subjected to processing – Held that:- Deemed credit would be admissible in respect of grey fabrics received by a processors for manufacture of processed fabrics cleared on payment of duty for export under bond. The Audit party of C & AG had raised an objection that since the grey cotton or manmade fabrics are not declared in the respective notification, the deemed credit would not be admissible - The objection had not been accepted by the department on the ground that in terms of the provisions of Cenvat Credit Rules, deemed credit would be admissible to the manufacturer of final products even if the declared inputs were not used directly by such manufacturer - the Government itself has now accepted the position that deemed credit would be available in respect of grey cotton /man made fabrics received by the processor for processing for export under bond or for clearance for home consumption – There was no infirmity in the order – Decided against Revenue.
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