Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 490 - AT - Central ExciseCENVAT credit - removal of inputs as such for export - input procured for intended to be used in export but actually used - credit on ‘stainless steel plates’ procured from M/s Jindal Stainless Steel Co by the assessee, M/s Visen Industries Ltd, vide invoices dated 16th January 2008 and 21st February 2008 and exported as such vide ARE-1 - whether order of recovery of credit holding a view that the products were exported as such, is justified? Held that: - Allowing of accounting offset would impose any limit on the number of such clearances that may be transacted by the appellant. By such procurement, by and export of such procurement as such, the appellant would accumulate adequate credit to avoid paying duty through account current. Though such accumulation is allowed when finished goods manufactured by the appellant are exported. Such a privilege is in concord with the general principle that taxes are not exported. But a manufacturer who adopts the strategy of procurement for export, on the strength of interpretation as proposed by appellant, would be misusing this facility to deprive exchequer of taxes in excess of normal offset of credit on inputs. This is not consistent with intend of tax by statute to levy of duty on manufacture of goods. Appeal allowed - decided in favor of appellant.
|