TMI Blog2016 (7) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... xported with domestic taxes as has been observed in various decisions of the Tribunal. The reasons are obvious. Generally, it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive by means of increasing its cost. The view that exports should not be burdened is a consistent view taken by various Tribunal and I find that in the facts and circumstances of the case, credit is eligible and no reversal of credit is warranted. - Demand set aside - Decided in favor of assessee. - Appeal No.E/41267/2015 - FINAL ORDER No.41075/2016 - Dated:- 6-7-2016 - SHRI P.K.CHOUDHARY, JUDICIAL MEMBER Shri M. Saravanan, Consultant, For the Appellant Shri L. Paneerselvam, AC (AR), For the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total credit for the purpose of apportionment Rs.7,92,379 D Amount to be reversed : @ 57.94%= Rs.4,59,104 E LESS: the amount reversed from April 2011 to September 2011 Rs.1,39,008 F Differential amount to be paid Rs.3,20,096 It was alleged that appellant-assessee had been using the common input services in the manufacture of both dutiable and exempted final products and were paying/reversing the amount attributable to input services used in or in relation to manufacture of exempted goods in terms of Rule 6 (3) (ii) of CCR read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Courier Service (Export) 38,484 2. Commission Agency Services (Export) 5,35,149 3. Forex Advisory Services 3,218 TOTAL 5,76,851 He submits that proportionate credit reversal is applicable only for common services used for both dutiable and exempted activity. Since the above services were used exclusively for dutiable activity i.e. for export and no part of the services were used for domestic clearances, they are eligible for 100% credit. Hence the proportionate credit reversal of ₹ 3,34,227/- [57.94% on ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. No. Category of Service Amount (Rs.) 1. Repair and Maintenance Services 1,322 2. Management Consultancy Services 9,940 3. Consultancy Services 18,025 TOTAL 29,287 He submits that since the above services were received prior to 1.4.2011 when Rule 6(5) of CCR was in existence, the claim of the department seeking for proportionate credit reversal of ₹ 16,969/- [57.94% on ₹ 29,287/-] is unsustainable. In this regard, he relied on CESTAT's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 11 of the OIO. The fact that the export of yarn has been made and the same is not disputed goes to show that the appellant is eligible for cenvat credit. The policy of the government is not to burden the goods to be exported with domestic taxes as has been observed in various decisions of the Tribunal. The reasons are obvious. Generally, it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive by means of increasing its cost. The view that exports should not be burdened is a consistent view taken by various Tribunal and I find that in the facts and circumstances of the case, credit is eligible and no reversal of credit is warranted. The fact that credit availed is for exported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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