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2019 (4) TMI 1964 - AT - Central ExciseRefund of CENVAT Credit - suo-moto re-credit - fulfilment of condition that the exports were to be completed within six months from the date of removal from the factory and to be evidenced by submission of duly endorsed ARE-1s - HELD THAT:- Credit of duties/taxes paid can be taken, in accordance with rule 3 of CENVAT Credit Rules, 2004, on receipt of eligible ‘inputs’, ‘capital goods’, and ‘input services’ against documentation prescribed therein. The eligibility for such availment is not in dispute here. On the contrary, it is the failure to discharge of liability on ‘output’ by failure to comply with condition of exemption that led to debit of the duty. The consequent restoration the credit, on the basis of duly endorsed ARE-1s, does not appear to have the sanction of Rules. The sole circumstance in which suo motu credit can be recorded did not prevail when respondent reversed the debit. In the absence of legal provision for restoration, the action of the respondent does not have authority of law. The respondent herein was an exporter and the factum of exports is not in dispute. The eligibility for refund of the CENVAT credit, debited towards the payment of duty on immediate inability to establish evidence of export, is also not in dispute. Furthermore, the respondent had been at pains, as pointed out by the first appellate authority, to report the restoration of credit as and when it occurred. There is, thus, no ground for alleging suppression, fraud or misrepresentation of any kind. Therefore, the demand stands barred by limitation of time as held by the first appellate authority. Appeal dismissed.
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