9911796707
TMI Blog2012 (11) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... 440/2012 after waiving pre-deposit. 2. The appellants are holders of Central Excise Registration No. AAACT2328KXM001. They had filed the five refund claims under Rule 5 of the CENVAT Credit Rules 2004 for the refund of unutilized Cenvat credit availed on inputs used in the manufacture of final products i.e. Polyester Staple Fiber (PSF) exported under Bond/Letter of Undertaking for different quarters as mentioned above. 3. These claims were verified by Range Superintendent and he submitted his verification report to the Assistant Commissioner of Central Excise, Rasayani Division, Raigad. The adjudicating authority held that refund claims under consideration satisfy substantially basic conditions laid down in Rule 5 of the CENVAT Credit Rules 2004 as amended by Notification No. 4/2006-CE(NT) dated 14.3.2006 read with Notification No. 5/2006-CE (NT) dated 14.3.2006 and adjudicating authority in respect of 1st four claims sanctioned the refund amounts to the assessee whereas in case of claim mentioned at Sr. No.5 the adjudicating authority has rejected the claim of the assessee. 4. Revenue did not accept the order of adjudicating authority in respect of 1st four claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) claiming that they are eligible for refund of credit of duty paid on inputs used in the manufacture of export goods under Rule 5 of the Cenvat Credit Rules. The Commissioner (Appeals) in respect of 1st four claims has allowed the Revenue appeal and in respect of the claim mentioned at Serial No.5 has rejected the assesse s appeal and now the appellants are before this Tribunal against all orders in appeal in respect of all five claims. 6. The learned Advocate appearing for the appellants had submitted that appellants are manufacturing Polyester Staple Fiber for which the Pure Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) are two major raw materials and apart from that there are some other inputs, Titanium Dioxide, Antimony Trioxide, Diethylene Glycol, Triethylene Glycol, Spin Finish Oil, Bale Cover, Pet Strap and actual consumption of these inputs is normally less than the SION norm declared for PSF by DGFT and the actual consumption of PTA is 0.870 MT and of MEG is 0.340 MT for PSF production. Since the rate of duty on the inputs is higher than rate of duty on PSF, they have unutilized CENVAT Credit in their Cenvat account and under Rule 5 of the CENVAT Credit Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or export under duty free scheme. The appellants are using Advance Authorization scheme and as per para 4.1.3 of the Foreign Trade Policy of August 2009 March 2014 and Foreign Trade Policy of 2004-2009, Advance Authorization is issued to allow duty free import of the inputs, which are physically incorporated in export product. He submitted that all the imported duty free inputs are to be used only for export in discharge of export obligation and the appellants are not eligible for any Cenvat Credit as inputs are free of CVD and, therefore, the refund of accumulated credit claimed by the appellants cannot be allowed in relation to the imported inputs. He therefore submitted that since all the exports made by the appellant were in respect of discharge of export obligation pertaining to the inputs imported by them, the appellants are not entitled of any refund and Commissioner (Appeals) has rightly rejected their claims. 8. After hearing both sides, we find that the refund of CENVAT Credit in respect of inputs or input services used in the manufacture of final production cleared for export under Bond is governed under Rule 5 of the Cenvat Credit Rules, 2004, which reads as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d during the quarter or month to which the claim relates (hereinafter referred to as the given period). 5.. 6.. 7.. 9. As per the above Rule Cenvat Credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or output service provider towards payment of duty/service tax and where for any reason the manufacturer or output service provider is not able to adjust the credit taken, the refund of such amount subject o such safeguards, conditions and limitations as provided under Notification 5/2006 dated 14.3.2006 will be available to the manufacturer. We find that refund is subject to safeguards, conditions and limitations to be specified by the Central Government. 10. In these cases in respect of four appeals the refunds were sanctioned by the adjudicating authority and the Revenue has challenged the sanctioning of refund before the Commissioner of Central Excise (Appeals) and Commissioner of Central Excise (A) has allowed the appeals filed by the Revenue. It is the contention of the Revenue that the refund is admissible only in respect of those inputs which have gone in the manufacture of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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