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2015 (10) TMI 136 - AT - Central ExciseDenial of exemption claim - refund of terminal excise duty - invalidated EPCG licences - Whether the respondent would be eligible for the exemption under Notification No. 56/02-CE - Held that:- The customer. M/s Reliance Telecom Infrastructure Limited had not availed Cenvat credit in terms of Rule 12 of the Cenvat Credit Rules, 2004 and in this regard had given a certificate that they will not claim refund of TED from DGFT. Based on this certificate, the respondent claimed refund of the excise duty from. DGFT. It is seen that as per the policy of DGFT, refund of terminal excise duty is not admissible if the goods supplied are exempted goods and in this regard DGFT has initiated proceedings against the respondent and has imposed penalty of ₹ 11 crores for wrongly claiming the refund availment of excise duty. In our view the matter of claiming terminal excise duty refund from DGFT in respect of the goods supplied by the respondent is a matter between them and the DGFT and on this ground it would not be correct to deny the benefit of Notification No. 56/02-CE to the Respondent for which the necessary condition stand satisfied by them. - Since, the respondent had availed the exemption under Notification No. 56/02-CE in respect of the goods supplied by them to M/s Reliance Telecom Infrastructure Limited against invalidated EPCG licences, the respondent should not have claimed refund of terminal excise duty from DGFT and since they have claimed the refund, DGFT has imposed penalty on them. But this cannot be the ground for denial of the benefit of the exemption notification to the respondent. - Decided against Revenue.
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