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M/s RSWM Ltd. Versus CCE & ST, Jaipur - I

2016 (6) TMI 353 - CESTAT NEW DELHI

Claim for refund of Cenvat credit of Additional Duties of Excise [Textiles and Textile Articles] - AED [T&TA] rejected - eligibility of the appellant for refund of AED [T&TA] lying in their Cenvat account from the date of exemption notification - applicability of time limit for the claim under Rule 5 - Held that:- The amount of ₹ 22,54,910/- taken credit in November 2010 the books resulting in their eligibility to claim for which the claim is filed on 18/5/2011 cannot be considered as hit .....

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n 09/7/2004. Even if it is considered that no specific time limit is prescribed for refund claim under Rule 5 in terms of Section 11B, the present claim for this amount after a period of more than six years cannot be covered even applying the provisions of General Clauses Act, 1897. - We find that the appellant is, in principle, eligible for refund of AED [T&TA] under Rule 5 of Cenvat Credit Rules, 2004. However, considering the facts of the case and the applicability of time limit for such .....

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arsimhan and Vipul Agarwal, Advocates For the Respondent : Shri M.R. Sharma, Authorized Representative (DR) ORDER Per. B. Ravichandran :- The appeal is against order dated 06/5/2015 of Commissioner (Appeals), Jaipur rejecting their claim for refund of Cenvat credit of Additional Duties of Excise [Textiles and Textile Articles] - AED [T&TA] in short. The appellants are engaged in the manufacture MM Yarn and are registered with the Department for payment of Central Excise duty. They are availi .....

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filed three rebate claims on the duty amounts [BED, AED [T&TA] and E. Cess]. These rebate claims were rejected by the Original Authority and on appeal the same was allowed. On further appeal by the Revenue, the Revision Authority set aside the appellate order and restored the original order of rejection of rebates. The appellants moved the Honble High Court of Rajasthan which was later dismissed as withdrawn by the Honble High Court. They have taken re-credit of the amounts which was earli .....

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in terms of Board Circular dated 12/3/2003 and 23/3/2007. The claim was rejected by the Original Authority on 30/5/2012. On appeal, the order was upheld by the Commissioner (Appeals) vide the impugned order. 3. Challenging the findings of the lower Authority, learned Counsel for the appellants mainly submitted on the following grounds :- (a) They are entitled to the refund claim in terms of Rule 5 of Cenvat Credit Rules 2004 on credits taken on the said inputs used in the final products, which w .....

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12 (275) E.L.T. 189 (P&H). Reliance was also placed on Tribunal decision in STL Products (P) Ltd. vs. CCE, Bangalore reported in 2006 (198) E.L.T. 521 (Tri. - Bang.) ; (c) The refund claim under Rule 5 of Cenvat Credit Rules is not governed by the time limit prescribed under Section 11B of the Central Excise Act, 1944. There is no relevant date prescribed under the said Section to cover the claim filed under Rule 5. Reliance was placed on Tribunal s decisions in CCE, Jalandhar vs. JCT Ltd. r .....

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appeal is without merit. Regarding the claim of the appellant for refund under Rule 5, he submitted that accumulated credit of duty on inputs is available only on account of export of final products under bond. In the present case the export was under claim for rebate on the final product and, hence, the claim is not covered by Rule 5. Further he also submitted that AED [T&TA] was exempted both on inputs and final products only w.e.f. 09/7/204. Prior to that date there is no bar in utilizing .....

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y the time limit. 5. Heard both the sides and examined the appeal records. The admitted facts of the case are that the appellants were availing Cenvat credit on AED [T&TA] paid on inputs which are used in the manufacture of final products which also had duty liability under the head AED [T&TA]. However, w.e.f. 09/7/2004 both inputs and final products were exempted from payment of AED [T&TA]. It is also an admitted fact that the appellants were exporting the final products. Initially .....

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is ₹ 22,54,910/-. On the date of exemption (08/7/2004), the appellants had a credit balance of ₹ 26,85,740/-. After utilizing a part of the amount for discharging the liable AED [T&TA] [for clearances prior to 08/7/2004], they filed the present refund claim for the remaining amount. 6. The first point for decision is the eligibility of the appellant for refund of AED [T&TA] lying in their Cenvat account from the date of exemption notification. The Board vide letter dated 22/3 .....

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of duty paid on inputs is inadmissible only when the final product is exempted from duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944. If the final product is not chargeable to AED, it cannot be said that the final product is exempted from basic excise duty. Further, the condition relating to the restriction on the utilization of such credit lays down that the credit taken of AED [T&TA] can be utilized only for the payment of AED [T&TA]. It is, therefore, o .....

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/2003-CX. dated 12/3/2003, will be applicable to AED [T&TA] subject to the conditions and limitations as prescribed under the said rules. 7. That the appellants exported finished goods and accumulated AED [T&TA] in their credit account has not been disputed. The AED [T&TA] was exempt both for inputs and final products with effect from the same day. Keeping in view the scope of Boards clarification, as above and other decided cases relied upon by the appellant, I find that the Assess .....

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credit could not be utilized in view of the exports by the appellant, the claim merits considering as explained by the Boards Circular (supra). 8. The second point for decision is the applicability of time limit for the claim under Rule 5. Both appellants and the Revenue relied on decided cases of this Tribunal and High Courts to reiterate the applicability or non-applicability of time limit prescribed under Section 11B for the claim made under Rule 5. The admitted fact is that the relevant da .....

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redited the debited account in their Cenvat account. This has been approved by the Jurisdictional Assistant Commissioner. Out of such re-credits an amount of ₹ 22,54,910/- relates to AED [T&TA]. The re-credit was taken in November 2010 and intimated to the Department the same was approved, ex-post facto, by the Jurisdictional officer on 12/5/2011. Refund of AED [T&TA] amounting to ₹ 22,54,910/- could be claimed as a refund only because of such re-credit. Without such re-credi .....

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