TMI Blog2007 (8) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... er rebate & bond – credit allowed - Appeal No. E/216/2005 - 1051/2007 - Dated:- 24-8-2007 - Shri P. Karthikeyan, Member (T) [Order per]- This is an appeal filed by the Revenue against an order of the Commissioner of Central Excise (Appeals), Salem. In the impugned order, the Commissioner has vacated the order of the original authority disallowing CENVAT credit of Rs.1,90,107/- availed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yarn procured under Notification No.43/2001-CE for the purpose of export without payment of duty. A major ground taken by the original authority in disallowing the Modvat credit is that A.R.E.2 form contained a certification to the effect that the exporter had not availed facility of Cenvat Credit Rules, 2001. This requirement evidenced that manufacturers availing the facility of procuring excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of inputs stage credit was availed under Cenvat Credit Rules, 2001. The Commissioner found that the bar against availing Cenvat credit applied only in cases where export was under claim for rebate. There was nothing in the relevant rules or procedure which lays down that credit should not be taken of duty paid on inputs which were used in the manufacture of goods exported under Rule 19 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT credit availed. The credit availed would be used for clearing goods for home consumption. By taking CENVAT credit, the respondents were trying to availing the facility under both Rule 18 19. 3. Heard both sides. The Commissioner found that the relevant Rules/Notification governing procurement of inputs without payment of duty for export under bond did not prohibit use of duty pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im the input stage credit and had exported the finished goods under bond. There is no requirement that the credit availed by the exporter should be reversed. The lower authority had proceeded on a wrong reading of the proforma of the application for removal of goods for export and the impugned order has rectified the error committed by the original authority. In the circumstances, I find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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