TMI Blog2008 (3) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... as been filed by M/s. Chandra Cotton Fabrics (CCF), Tiruppur. In the impugned order the Commissioner (Appeals) affirmed the order of the original authority rejecting the claim for refund of Rs. 4,77,475/- in terms of Rule 5 of the Cenvat Credit Rules, 2002 (CCR). The claim relates to April and May, 2004. The appellant is engaged in the manufacture and export of fabrics. From the records it is seen that the finished goods of the appellants were entirely cleared for export. As the appellant was not in a position to utilize the accumulated cenvat credit for payment of duty for want of clearances to home market, they had claimed refund of the accumulated cenvat credit. The lower authorities rejected the claim on the basis that in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities does not bar refund of the accumulated credit. The condition allows refund of credit to manufacturer exporters who cannot utilize the accumulated input credit for want of clearances for home consumption. 3. The Ld. Counsel also cites a decision of the Tribunal in Navbharat Industries vs. CCE, Mumbai reported in 2006 (199) ELT 148 (Tri.-Mum.). In the said decision, the Tribunal had held that refund of accumulated input credit was a substantive right of the citizen. Such credit accumulated on account of the finished goods being exported had to be refunded if the credit could not be adjusted for any reason. In the light of the above decision, the impugned order is not sustainable. 4. The Ld. SDR reiterates the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of final products which are cleared for export under bond may be allowed subject to the safeguards, conditions and limitations, set out in the Appendix to this notification. APPENDIX 1..…. 2. 3..…. 4.…. 5. The refund is allowed only in those circumstances where a manufacturer is not in a position to utilize the credit of the duty on inputs allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates." 6.…. On a combined reading of Rule 5 and the said Notification, it is amply clear that when a manufacturer exports most of his production or entire production and does not have many clearances to the home market, he is not in a position to utilize the accumula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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