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2016 (12) TMI 712 - AT - Central ExciseRefund claim - manufacture of Tray Cart System - As the appellants did not clear any goods in DTA and had exported entire quantity of Tray Cart Systems manufactured and the Cenvat credit taken on the inputs could not be utilised. The appellants filed refund claims for refund of accumulated Cenvat credit to the tune of ₹ 30,94,591/- - whether Cenvat credit of duty paid on inputs used in the manufacture of exempted final product is admissible when goods are cleared for export under bond? Held that: - In the case of Union of India Vs Sharp Menthol India Ltd [2015 (1) TMI 623 - SUPREME COURT] the Apex Court had occasion to consider the similar issue, which has also been decided in favour of the assessee by dismissing the appeal filed on the part of Revenue. The Hon’ble High Court of Bombay, in the case of UOI Vs Sharp Menthol India(Ltd) [2011 (4) TMI 27 - BOMBAY HIGH COURT] held that assessee is entitled to the credit of the duty paid on inputs viz. Menthol used in the manufacture of exempted goods ie menthol crystal which were exported under bond without payment of duty. Such cases are covered under Rule 6(6)(V) of Central Excise Rules,2002 and not under Rule 6(1)(6)(4) of Cenvat Credit Rules, 2004. Following the same, I hold that the first ground raised in the show cause notice for rejection of refund is not sustainable. The goods having been exported, it is immaterial whether the accumulated credit has been show as receivable/advances and the appellant is eligible for refund of accumulated credit in terms of Rule 5 of Cenvat Credit Rules, 2004 - I hold that appellant is eligible for refund - appeal allowed - decided in favor of appellant-assessee.
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