TMI Blog2011 (3) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... te is otherwise allowable, the same cannot be denied on the ground that the duty is paid by reversing the credit. Secondly, the Central Government by its Circular No. 283/1996, dated 31st December, 1996 has held that amount paid under Rule 57F(1)(ii) of Central Excise Rules, 1944 (which is analogous to the Cenvat Credit Rules, 2002/Cenvat Credit Rules, 2004) on export of inputs/capital goods by debiting RG 23A part II would be eligible for rebate. In these circumstances denial of rebate on the ground that the duty has been paid by reversing the credit cannot be sustained. Argument of the Revenue that identity of the exported inputs/capital goods could not be corelated with the inputs/capital goods brought in to the factory is also wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was rejected by the adjudicating authority by order-in-original dated 19th July, 2007. Challenging the aforesaid order the assessee filed an appeal before the Commissioner Central Excise (A) who by his order dated 30th April, 2008 upheld the order-in-original and rejected the rebate claim of the assessee. 4. On a revision application filed by the assessee, the Joint Secretary to the Government of India by the impugned order dated 4th June, 2010 held that the assessee was liable to be treated as a deemed manufacturer in respect of the inputs/capital goods exported by the assessee and hence entitled to the rebate claim. Challenging the aforesaid order the present petition is filed by the Revenue. 5. Mr. Jetly learned Counsel appearing on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod 2003 to 2005 and therefore the assessee was entitled to claim rebate of duty under Rule 18 of Central Excise Rules, 2002 read with Rule 3(4) Rule 3(5) of Cenvat Credit Rules, 2002/Rule 3(5) Rule 3(6) of Cenvat Credit Rules, 2004. As per Rule 3(4) 3(5) of the Cenvat Credit Rules, 2002 the assessee is liable to be treated as a deemed manufacturer when duty paid inputs or capital goods the credit of which is taken are cleared for export on payment of duty by reversing the amount equal to the credit availed. In support of the above submission Mr. Shah relied upon Government of India Circular No. 283/96, dated 31st December 1996. 8. Mr. Shah further submitted that in the present case the exports were effected under ARE 1 form duly ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value determined for such goods under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be, and such removal shall be made under the cover of an invoice referred to in rule 7. Rule 3(5). The amount paid under sub-rule (4) shall be eligible as CENVAT credit as if it was a duty paid by the person who removed such goods under sub-rule (4). 13. Thus, under the 2002 Rules, a manufacturer who takes credit of duty paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 2002 Rules is pari materia with Rule 57(1)(ii) of the Central Excise Rules, 1944 it is evident that inputs/capital goods when exported on payment of duty under Rule 3(4) of 2002 Rules, rebate of that duty would be allowable as it would amount to clearing the inputs/capital goods directly from the factory of the deemed manufacturer. In these circumstances, the decision of the Joint Secretary to the Government of India that the assessee who has exported inputs/capital goods on payment of duty under Rule 3(4) 3(5) of 2002 Rules [similar to Rule 3(5) 3(6) of 2004 Rules] therefore entitled to rebate of that duty cannot be faulted. 17. The contention of the revenue that the payment of duty by reversing the credit does not amount to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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