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2019 (3) TMI 510 - AT - Central ExciseRefund of CENVAT Credit - clearances to 100% EOU - deemed exports - rejection on the ground of disbarment owing to export under claim for rebate which was, therefore, in dissonance with the second proviso to rule 5 of CENVAT Credit Rules, 2004 -rule 18 of Central Excise Rules, 2002 - Held that:- The sole reason for rejection of the refund claim is rendered unsustainable. The upholding of the rejection of this very claim of refund on a different ground by the first appellate authority is contrary to the principles of natural justice. The first appellate authority has approved of the order of rejection of the claim for refund for the subsequent period on the ground of availment of the privilege of export under claim for rebate during the same period while claiming the refund on deemed exports effected to eligible entities - We find a logical inconsistency in this finding; export under claim for rebate, as per rule 18 of Central Excise Rules, 2002, is restricted to, and applicable only for, physical exports. There is no scope for invoking the privilege of rule 18 of Central Excise Rules, 2002 for clearances effected to ‘100% Export Oriented Units’ licensed in accordance with the Foreign Trade Policy notified under the Foreign Trade (Development & Regulation) Act, 1992. The impugned order is flawed and the appellant-assessee is entitled to the claim for refund of accumulated CENVAT credit of duties/taxes on inputs/input services used in the manufacture of goods supplied as ‘deemed exports’ - appeal allowed - decided in favor of appellant.
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