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2022 (5) TMI 1394 - CESTAT MUMBAI100% EOU - refund of cenvat credit accumulated - export of goods under a bond or a letter of undertaking - quantum of waste generated/determined as per input output norms - denial of refund on the ground that waste generated is more than the prescribed norms - Rule 5 of Cenvat Credit Rules - HELD THAT:- The order of the lower authority has denied the refund stating that the waste generated is more than the prescribed norms. The above ground cannot be a reason for denial of refund of such accumulated credit. If excess waste was generated, the same has also been cleared in DTA on payment of duty due on such waste. This automatically will take care of such accumulated credit. Hence we find that excess waste generated cannot be a norm for denial of such credit. There are no merits in the impugned order. Even the appeal filed by Revenue is not sustainable for this reason only. Reliance can be placed in the case of M/S ASIL INDUSTRIES LTD VERSUS CCE, JAIPUR I [2015 (2) TMI 747 - CESTAT NEW DELHI] where it was held that The appellant would be eligible for cash refund of the accumulated Cenvat credit taken in respect of inputs which have been used in the manufacture of goods which has been exported under bond/LUT and in this case, cash refund can be disallowed only to the extent the cenvated inputs are contained in the scrap cleared for home consumption on payment of duty. The appeals filed by the appellantassessee are allowed and the appeals filed by the Revenue are dismissed.
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