TMI Blog2017 (7) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... the export goods that means if the goods is cleared under bond then due to non-payment of duty the cenvat credit gets accumulated and the same is refunded under Rule 5, as per the input output ratio between the export goods and the input used, the Rule 5 provides the refund of accumulated credit only in case the export of goods made under bond and not in the case of export under rebate - Moreover, there is a condition in the notification under Rule 5 that the refund shall not be applicable when the assessee claims the rebate of duty drawback. The refund was rightly denied to the appellant as the same is not governed by Rule 5 of CCR, 2004 - appeal dismissed - decided against appellant. - E/680/10 - A/88115/17/SMB - Dated:- 26-5-2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit is not due to export of goods as the export of goods was made on payment of duty refund under Rule 5 of Cenvat Credit Rules, 2004 is admissible only when the accumulation is due to non-payment of duty on the export goods that means if the goods is cleared under bond then due to non-payment of duty the cenvat credit gets accumulated and the same is refunded under Rule 5, as per the input output ratio between the export goods and the input used, the Rule 5 provides the refund of accumulated credit only in case the export of goods made under bond and not in the case of export under rebate. Moreover, there is a condition in the notification under Rule 5 that the refund shall not be applicable when the assessee claims the rebate of duty dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the detail of inputs used in export under Bond/LUT; (ii) that the appellant exporter goods worth ₹ 270.20 Lakhs under claim for rebate and NIL under Bond/LUT; (iii) that no refund of credit shall be allowed if the manufacturer claims rebate of duty under the Central Excise Rules, 2002 in respect of such duty and (iv) that Appendix-6 of the Notification No.5/2006 - CE(NT) dated14.03.2006 stipulates that the claimant has to submit the prescribed enclosures and the relevant extracts, in original, along with the Form A before the expiry of the period specified in Section 11 B of the Central Excise Act, 1944 and in not doing so, the claimant failed to follow the Notification No.5/2006 - CE(NT) dated 14.03.2006. 7. AC while deciding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of service tax under the Export of Service Rules, 2005 in respect of such tax. Provided further that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act shall be utilized for payment of service tax on any output service. Explanation: For the purposes of this rule, the, words 'output service which is exported' means the output service exported in' accordance with the Export of Services Rules, 2005. From above, it is crystal clear that Cenvat Credit of only those inputs or input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ennai) , the inputs used in textile articles were exported under BOND and not under claim for rebate. Similarly in the case of Tuticorin Alkali Chemicals Fertilizers Ltd. Vs. CCE, Tirunelveli - 2007(220) ELT 965(Tri-Chennai), the goods were exported under BOND. The relevant para 2 of the order states that After hearing the appellants, the Commissioner(Appeals) found that in terms of Rule 5 of Cenvat Credit Rules, 2002, credit accumulated on account of the export of final products under Bond or letter of undertaking without payment of duty Therefore facts of the cited cases are different from the instant case. 10. Arrangement in Rule 5 is very simple. You are not paying duty on goods exported, therefore question of rebate of an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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