TMI Blog2017 (1) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... It is the stated doctrine in tax administration that domestic taxes are not exported with goods. Legislation carves out special provisions in taxing statutes for ensuring that such anathema is eliminated. The failure on the part of the lower authorities to perceive the intent of provision of rule 18 of Central Excise Rules, 2002, by digressing to the issue of payment of duty without the legal compulsion to do, appears to have blindsided them into suspicion of the motives for payment of such duty to the exclusion of the larger issue, viz, burdening the export value with domestic taxes. Appeal allowed - decided in favor of appellant. - Appeals No. E/3187 & 3188/2005 - A/94609-94610/16/EB - Dated:- 19-12-2016 - Shri M V Ravindran, Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in pieces whereas it appears from the documents pertaining to the domestic sale that goods were manufactured in running length and hence was wire and not contacts. Being exempt goods, it was also determined that the use of common inputs on which credit had been availed required discharge of duty liability on the value of exempt goods. The lower authorities concurred in recovery of rebate sanctioned erroneously and in the denial of the rebate claimed for subsequent period by holding that the goods under export were exempted goods and hence not eligible for rebate of duties paid. 3. Learned Counsel for appellant draws attention to the tariff heading 7101.70 which is articles of silver and note 7 of chapter 71 of schedule to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts that are separately not identifiable with such exempt goods, and on which credit has been availed, is required to be discharged or that the benefits and privileges that may arise therefrom, in the form of rebate or refund, can be denied. That would be an opportunistic decision conditioned by rates of duty instead of consistency in tax administration based on sound and cogent principles. The lower authorities have erred in adopting the approach which is redolent of opportunism. 7. The appellant cannot be faulted for contending that a finding of duty not being leviable carries with it the concomitant responsibility to reverse the debit in the CENVAT credit account which would then render the assessee eligible to refund of input credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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