Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 890 - AT - Central ExciseRefund claim - deemed exports - goods supplied to Mega Power Project under International Competitive Bidding, which is deemed export in terms of Foreign Trade Policy - Rule 5 of Cenvat Credit Rules, 2004. Whether the goods supplied to a Mega Power Project, treated as deemed export in terms of Foreign Trade Policy, are eligible for refund under the provisions of Rule 5 of Cenvat Credit Rules, 2004 for the period from March, 2015 to June, 2015? Held that:- The refund of unutilized credit on inputs is governed by rules made or any notification issued under Central Excise Act, 1944. Accordingly, Rules 5,5A and 5B of CCR, which are the only rules made for such refunds are in complete harmony with Section 11B (2) (c) of the Act since CCR, 2004 have been made under Section 37 of Central Excise Act, 1944. Thus, there is no contradiction or conflict between Section 11B and Rule 5 of Cenvat Credit Rules. As a result, the contention that Rule 5 is supplanting the Section 11B is patently fallacious. It is therefore clear that Section 11B allows refunds in accordance with Rule 5 of CCR and Notifications issued under the Act and any restrictions made by legislature in this Rule on any category of exports etc. are not contrary to the said Section. In the instant case there is no conflict between the primary statute and the delegated provisions as the primary statute has made the provision of allowing the refunds as per Rule 5 of CCR and Notification issued under the Act and any restriction made in the said Rules on any category of exports imposed by legislature is in consonance with the Section 11B of the Act. The specific inclusion of clause (1A) in Rule 5 bid clearly shows the legislative intent to allow refund facility to actual physical exports. As the right to refund for exports other than physical exports did not accrue under law, which in the impugned period is permitted for physical exports only, there is no conflict between Rule 3, 4 and 5 of Cenvat Credit Rules. Appeal dismissed - decided against appellant.
|