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2016 (12) TMI 86 - CESTAT MUMBAI

2016 (12) TMI 86 - CESTAT MUMBAI - TMI - Manufacture - pickling and annealing - demand of the ineligible cenvat credit availed and also for the refund of the rebates already sanctioned - Held that: - it is undisputed that annealed and pickled stainless steel wire rods were exported on payment of duty under rebate. The exports under rebate are always under the physical control or the approval of the jurisdictional range officers, and the range officers should have objected to such clearances soug .....

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62 - CESTAT, MUMBAI], this Tribunal has categorically held that the assessee cannot be prevented from availing benefits available to the merchant exporter for the exports merely because he happens to be a manufacturer. In that case, the petitioner/appellant therein was a manufacturer and had exported the excess of procured raw material to overseas buyers under bond or under claim of rebate which was sought to be denied by the jurisdictional authorities. - Credit allowed - appeal allowed - d .....

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excise registration number and availed cenvat credit on hot rolled stainless steel wire rods used to prepare pickled and annealed stainless steel wire rods. The appellant had exported the pickled and annealed stainless steel wire rods under rebate. The lower authorities were of the view that pickling and annealing does not amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944. Hence availment of cenvat credit of the duty paid on inputs was incorrect. Coming to .....

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process of pickling and annealing of stainless steel wire rods and exporting the same under rebate. It is his submission that the provisions of Rule 6(1) of the Cenvat Credit Rules may not apply and the provisions of Rule 3(4) of the Cenvat Credit Rules, 2002 will apply and clearance of inputs as such on payment of duty equal to credit availed is permitted. He would submit that earlier inputs as such would be cleared under bond and on payment of duty for export. It is his submission that if it .....

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unal s decisions in the case of Glass & Ceramics Ltd. vs. CCE, Mumbai-I reported in 2014 (305) ELT 133 and Lamicoat International Pvt. Ltd. vs. CCE, Noida reported in 2015 (324) ELT 411, for the proposition that once the inputs are exported, the appellant is eligible to avail cenvat credit and duty paid needs to be refunded. 4. The learned departmental representative, on the other hand, submits that two conditions need to be satisfied for availing modvat/cenvat credit the manufacturer must h .....

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3 (295) ELT 353 (SC) would apply. 5. We have considered the submissions made by both sides and perused the records. 6. The undisputed facts are the appellant has procured the stainless steel wire rods on payment of duty and availed cenvat credit. It is also undisputed that the said stainless steel wire rods underwent an activity of pickling and annealing which the appellant considered as a process which would amount to manufacture, and exported the goods under bond on payment of duty claiming th .....

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the avowed principle of the Government of India that when the goods are for export, no taxes/duties need to be included in the value. This avowed principle of the Government of India will go for a toss if the appellant herein is not granted the benefit of cenvat credit on the inputs which he has procured on payment of duty and after undertaking the process of pickling and annealing, exported the goods. The policy of the Government of India to encourage the exports will be relegated to the backbe .....

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of rebate which was sought to be denied by the jurisdictional authorities. The findings of the Tribunal are in paragraph 10, which we reproduce below:-? 10. If the manufacturer of continuous cast copper wire rods 8 MM were to export without payment of duty under bond he was eligible to export and he was also eligible to retain and use the duty on the inputs which have gone into manufacture of the said product. If he had chosen to export on payment of duty he would be eligible for rebate on duty. .....

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