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2018 (12) TMI 341 - AT - Service TaxRefund of cenvat credit taken on the inputs services - inputs services used in the manufacture of the finished goods which were subsequently exported - appellant is denied eligibility to avail cenvat credit on input services due to being exclusively used for exempted goods as per Rule 6(1) of CCR, 2004 and refund is also denied - refund also denied on the ground of non-registration of manufacture and also on the ground of non-distribution of credit - Held that:- Any manufacturer who clears a final product or an intermediary product for export is entitled for credit subject to above conditions. The appellant in the present case admittedly is engaged in clearing excisable goods however the controversy is whether the goods i.e. gems and jewellery were fully exempted or not. Under Central Excise, “exemption” means exemption by Notification No. under Section 5A of Central Excise Act, 1944 thus goods exported under bonds are not exempted from duty. A conjoint reading of this Circular with the above requirements of Rule 5 makes it clear that a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking which is exported without payment of service tax shall not be an exempted goods and as such shall be allowed refund of cenvat credit in view of Rule 5 of Cenvat Credit Rules - Notification No. 12 of 17.03.2012 is therefore not applicable in the case of export of excisable goods. Non-registration of appellant for manufacture of excisable goods - Held that:- Rule 3 of Cenvat Credit Rules, 2004 prescribes that cenvat credit can be taken by a manufacturer or a provider of due to service and that there is no requirement of the registration at all - The finding of the Commissioner(Appeals) mandating the registration are therefore not sustainable. Non distribution of the credit - Held that:- The goods of the appellant are excluded from the scope of “exempted goods” - Rule 7(b) of CCR, 2004 to reject the refund is not applicable. Refund allowed - appeal allowed - decided in favor of appellant.
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