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2023 (11) TMI 369 - AT - Central ExciseRecovery/reversal of credit - Export of Goods - Credit was availed under Rule 16 on returned Goods - credit not reversed by the appellants when the chassis were exported and cleared under N/N. 108/1995-C.E. along with interest and for imposing penalties. The main allegation raised by the Department is that as the credit is availed by the appellants under Rule 16 of the Central Excise Rules, 2002, they cannot remove the goods for export or clear the same under exemption Notification No. 108/1995-C.E. without reversing the credit. HELD THAT:- Rule 16 makes it amply clear that the credit is availed in terms of the CENVAT Credit Rules, 2004. There is no embargo envisaged under Rule 16 for export of the goods or for clearance under the exemption Notification. The view taken by the authorities below is that reversal of the credit availed under Rule 16 is a pre-condition for removal of the said goods and therefore, the appellant has to reverse the credit. It is also alleged that when the goods were not originally meant for export, it cannot be later exported when the goods are brought back to the factory under Rule 16 - the said view of the Commissioner (Appeals) cannot be endorsed upon. The demand cannot sustain. The impugned order is therefore set aside - Appeal allowed.
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