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2017 (7) TMI 188 - AT - Central ExciseRefund of accumulated CENVAT credit - accumulation of credit due to variation of rate of duty between inputs and final product - denial on the ground that firstly refund under Rule 5 of Cenvat Credit Rules shall not be applicable in case the assessee claim rebate or drawback. Secondly, the Rule 5 is applicable only in case where the export is made under bond - Held that: - The accumulation of Cenvat Credit is not due to export of goods as the export of goods was made on payment of duty refund under Rule 5 of Cenvat Credit Rules, 2004 is admissible only when the accumulation is due to non-payment of duty on the export goods that means if the goods is cleared under bond then due to non-payment of duty the cenvat credit gets accumulated and the same is refunded under Rule 5, as per the input output ratio between the export goods and the input used, the Rule 5 provides the refund of accumulated credit only in case the export of goods made under bond and not in the case of export under rebate - Moreover, there is a condition in the notification under Rule 5 that the refund shall not be applicable when the assessee claims the rebate of duty drawback. The refund was rightly denied to the appellant as the same is not governed by Rule 5 of CCR, 2004 - appeal dismissed - decided against appellant.
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