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2016 (11) TMI 1726 - AT - Central ExciseRefund of CENVAT Credit - input services utilised for manufacture of goods at nil rate of duty supplied to the SEZ as well as exported - Rule 5 of Cenvat Credit Rules, 2004 - HELD THAT:- There is an exception provided in sub-rule (6) of Rule 6 of Cenvat Credit Rules, 2004 to the application of sub-rule (1) to (4) thereof. Clearances made to SEZ are not governed by the denial provision. Appellant’s submission is therefore certainly correct to say that any attempt to deny the refund of input credit shall make the services or goods exported costlier and will amount to export or deemed export of taxes which is not permitted in international trade practice as well as supply to SEZ domestically. Therefore, denial of refund to the appellant by the application of Rule 5 of Cenvat Credit Rules, 2004 is not reasonable, for which, the order of the authority below is set aside - appeal allowed.
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