9911796707
TMI Blog2011 (9) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in the manufacture of stainless steel, aluminium utensils and cutlery. The appellants filed refund claims under Rule 5 of the Cenvat Credit Rules, 2004 in respect of service tax paid on the input services used in or in relation to the manufacture of final product. The adjudicating authority considered the claims as per the provisions of Notification 41/2007-ST dated 6.10.2007 and rejected the same. The Commissioner (Appeals) upheld the impugned order. 4. The contention of the appellants is that the refund claims were rejected mainly on the ground that the final product which was exported is exempted from payment of central excise duty. Treating the final product as exempted goods, the refund claims were considered under Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intermediate product cleared for export, or used in providing output service which is exported, the CENVAT credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of, (i) duty of excise on any final product cleared for home consumption or for export on payment of duty; or (ii) service tax on output service, and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification: Provided that no refund of credit shall be allowed if the manufacturer or provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the manufacture of exempted or duty paid goods, the manufacturer has to maintain separate records and in the absence of separate records, the manufacturer has to pay 10% of the price of the exempted goods. The rule further provides that the provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty and are cleared for export under bond in terms of the provisions of Central Excise Rules. This rule is interpreted by the Hon ble Bombay High Court in the case of Repro India Ltd. (supra) and the Hon ble Himachal Pradesh High Court in the case of Drish Shoes Ltd. (supra). The Hon ble High Court held that input credit is available in respect of the inputs used in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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