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2014 (6) TMI 685 - AT - Central ExciseReversal of CENVAT Credit - Supply of goods to 100% EOU without payment of duty - deemed export - Whether the capital goods can be removed without reversing the CENVAT credit to an EOU unit availing the benefit of Notification No. 22/2003-CE - Held that:- Commissioner (Appeals) has rightly relied upon the circular issued by the Board wherein it has been clarified that inputs can be considered as excisable goods and clearance of the same can be placed on par with clearance of excisable goods. Even though Rule 19(2) of Central Excise Rules was not cited nor discussed by any of the lower authorities, I still feel that also will be relevant. According to Rule 19(2) of Central Excise Rules, any materials can be cleared without payment of duty by a manufacturer for export. Provisions of Rule 19(2) which provide for clearance of goods without payment of duty irrespective of the fact that they were manufactured by the assessee or otherwise in my opinion would cover the issue in favour of the appellant. Further another point which was submitted by the learned counsel for the respondent that would be relevant is that after 2004, 100% EOU was eligible for the CENVAT credit. Therefore even if the assessee were to reverse the CENVAT credit the receiving unit would have taken the credit and if they could not utilize the same for payment of duty they could have claimed refund - Following decision of Solectron Centum Electronics Ltd. [2008 (11) TMI 538 - CESTAT, NEW DELHI] - Decided against Revenue.
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