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2022 (9) TMI 941 - Central Excise
CENVAT Credit - denial of credits - exported of inputs as such - allegation that no manufacturing process had been undertaken - HELD THAT:- In the instant case whether the process undertaken by the Appellant will enable it to avail CENVAT Credit is to be determined. Even by going through the alternative plea made by the Appellant, it can very well be said that it was entitle to get CENVAT Credit on those 4 items also.
Going by the alternate plea made in the appeal memo at para 3.1 it would make it quite clear that even if inputs are assumed to have been cleared as such, they are duty paid excisable goods which were cleared under bond in terms of Notification issued under Rule 19 which does not provide for reversal of credit of duty paid on such exported excisable goods because legislative intent was to promote export of goods and not export of taxes. This submissions is further strengthen and supplemented with reference to the reliance placed by the Appellant in the relevant case laws on the issue, besides the fact that Section Note - 6 of Chapter XVI of the Central Excise Tariff Act, 1985, that was also referred by the Commissioner (Appeals) in his order but in a different context, clearly reveals that in respect of goods covered under this Section dealing with television image and sound recorders, incomplete or unfurnished goods having essential character of complete or finished article shall also amount to manufacture.
The order passed by the Commissioner of Central Tax, Central Excise & Service Tax (Appeals), Raigarh to the extent of denial of CENVAT Credits on those 4 items namely copper strips, lights, copper fasteners and paints is hereby set aside - Appeal allowed.