TMI Blog2017 (5) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT credit on inputs which have suffered Central Excise duty but the finished goods are exported - appeal dismissed - decided against appellant. - E/1653/2008 - A/10980/2017 - Dated:- 15-5-2017 - Dr D.M. Misra, Member (Judicial) And Shri Ashok K Arya, Member (Technical) For Applicant : None For Respondent : Shri A Mishra, Authorised Representative ORDER Per: Shri Ashok K Arya This is the appeal against OIA-RKA/785/SRT-I/2008 dt 14.11.2008 where under the appellant's claim for refund of Cenvat Credit lying unutilized in their Cenvat Credit account has been rejected. 2. The brief facts are that: i) The appellant is engaged in the manufacture of Texturised Polyester Filament Yarn and Texturised Polyes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hearings, whenever the case was listed. The matter being over nine years old, it can not be kept pending and therefore, the same is being decided by this order. 4. After going through the submissions of the appellant in the appeal memorandum on record and the submissions of Revenue, it appears that the subject matter is covered by the Tribunal's Larger Bench decision in the case of M/s Steel Strips Vs CCE, Ludhiana - 2012 (26) STR. 270 (Tri.LB) and the Tribunal decision in the case of M/s Phoenix Industries Pvt Ltd Vs CCE, Raigad -2015 (330) ELT. 303 (Tri-Mum). 5. From the facts on record the provisions of law as applicable, it is clear that Rule 5 of Cenvat Credit Rules, 2004 does not authorize granting refund of Cenvat Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made by both sides. We find that the issue is regarding the correct interpretation of Rule 5 of Cenvat Credit Rules, 2004. Rule 5 reads as - Where any inputs are used in the final products which are cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate products cleared for export, the Cenvat credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations as may be specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the final products which are cleared for export. Thus the first condition is that the final products must be exported. The general principle of construction in canons of law is that a legislative instrument has to be read as a whole. The phrases in a sentence have to be read in their cognate sense. That is, Rule 5 has to be read as a whole and not in parts. The whole conveys only one sense i.e. refund of unutilized credit is only permissible in case of export of goods and not for any other reason. 7.3 The other important part of Rule 5 is that it allows refund of unutilized Cenvat credit subject to such safeguards, conditions and limitations as may be specified by the Central Government by Notification. It is seen that the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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