Home Case Index All Cases Customs Customs + CGOVT Customs - 2015 (9) TMI CGOVT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 765 - CGOVT - CustomsRate of duty drawback – Reversal of Cenvat credit – Applicants claimed duty drawback under All Industries Rate (AIR) of Drawback on their export – Department availed Cenvat credit of input services and therefore, it appeared that they were not eligible for drawback @ 14.8% but eligible for drawback at lesser rate of 3% – JS(RA) remanded matter back with directions to carry out verification – In remand proceedings, Commissioner (Appeals) rejected appeal filed by applicant, without carrying out any verification as directed by JS (RA) – Held that:- if any amount has been availed as credit on any inputs, used in manufacture of final product, then such Cenvat credit should be reduced from eligible drawback – Rate of drawback applicable for different exports are notified by Government by issuing Notification under Rule 3(1) of Drawback Rules after considering all relevant factors – Admittedly drawback claims sought to be reduced @ 3% instead of 14.8% @ as claimed by applicant on ground that applicant availed Cenvat credit on input services. Reversal of Cenvat credit before utilization amounts to non-taking of credit that such reversal can be done subsequent to export of goods – In present case applicant made proportionate reversal of Cenvat credit before utilization of same – There are no substantial material evidences to support allegation of mala fide intention on part of applicant –Since, applicant has reversed proportionate Cenvat credit availed on input services when dispute arose and claimed that said amount was not utilized and remained in balance, so this reversal has also to be treated as non-availment of Cenvat credit on input services – Therefore applicant entitled for drawback claims at higher rate @ 14.88% – Impugned Order set aside and revision application allowed – Decided in favour of Assesse.
|