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2016 (7) TMI 430 - AT - Central ExciseCenvat Credit - input services used for export of goods - reversal of proportionate cenvat credit relating to exempted goods cleared every month as mandated under Rule 6 (3A) and Rule 6 (3) (ii) of CCR - but they had reversed only part amount during the period from April 2011 to September 2011, rendering a short reversal of proportional input service credit - Held that:- The fact that the export of yarn has been made and the same is not disputed goes to show that the appellant is eligible for cenvat credit. The policy of the government is not to burden the goods to be exported with domestic taxes as has been observed in various decisions of the Tribunal. The reasons are obvious. Generally, it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive by means of increasing its cost. The view that exports should not be burdened is a consistent view taken by various Tribunal and I find that in the facts and circumstances of the case, credit is eligible and no reversal of credit is warranted. - Demand set aside - Decided in favor of assessee.
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