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2017 (10) TMI 277 - CESTAT MUMBAIRefund claim - denial on the ground that the appellants have not exported the goods under bond - Rule 5 of the Cenvat Credit Rules - Held that: - the goods manufactured by the appellants are totally exempted and therefore export of same under bond serves no purpose. Bond is a requirement in cases where the products are chargeable to duty and in case of failure to export, duty liability thereon can be enforced through bond against the exporter - In the instant case, it is not in dispute that the goods manufactured by the appellants were exempted and not chargeable to duty. It is also not in dispute the goods were being exported. The intention of Rule 5 of Cenvat Credit Rules is to ensure that the tax and duties are not exported. Keeping the spirit of the Rule in mind, the refund of cenvat credit should be allowed even in circumstances when exports were not made under bond, although it is a requirement of Rule 5 as well as Rule 6(6)(v) of CCR. This is more so for the reason that the goods exported by the appellants are fully exempt and export under bond would serve no purpose. Refund allowed - appeal dismissed - decided against Revenue.
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