TMI Blog2018 (12) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... tion thereof, each stage in the manufacturing process should be entitled to disassociate itself from the duties discharged upto the immediately preceding for computation of excise liability. Thus the full burden of duty should, without the privilege of passing on, be borne by the first non-assessee in the chain of transactions. The input credit scheme is devised towards that end and embodied as the CENVAT Credit Rules, 2004. Denial of CENVAT credit accumulated from duties discharged on procurements employed in exported goods would, therefore, load the burden on the exporter which defeats the very premise that is contained in the CENVAT Credit Rules, 2004. The provisions of rule 10 or rule 11 will not apply to debonding units. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit and for recovery of ₹ 8,31,031 that was utilized, between 30th September 2008 and 6th December 2008, by Unit I for discharge of duty liability on clearance of cotton yarn valued at ₹ 2,01,70,715. 2. Aggrieved by the confirmation in order-in-original no. 16/BR- 16/Th-I/2010 dated 10th March 2010 of Commissioner of Central Excise, Thane I of the denial of credit balance, recovery of duty, along with interest as applicable, and imposition of penalties, appellant seeks relief. The findings of the adjudicating authority are that, consequent upon debonding of the two erstwhile units under the scheme in the Foreign Trade Policy, the new units registered under Central Excise Act, 1944 would be deemed to have commenced exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004 without considering the eligibility in terms of the scheme of CENVAT and the fundamental premise that export value should not to be saddled with duties in the hands of either the overseas customer or of the exporter. According to her, the interpretation placed by the adjudicating authority loads such burden on the exporter. She places reliance on the decision in Tecumseh Products India Pvt Ltd v. Commissioner of Customs, Central Excise Service Tax, Hyderabad IV [2015-TIOL-3066-CESTAT-BANG]. Learned Authorized Representative reiterates the findings of the original authority and points out that it was only by amendment to rule 17 of Central Excise Rules, 2002, through notification no. 18/2004-CE (NT) dated 6th September 2004, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Act, 1944 and subject to the same excisability under Central Excise Act, 1944. The administration of the registration system does not, and cannot, create a separate class of coverage under the Central Excise Act, 1944 other than as envisaged in that statute. The sole difference, therefore, lies in duty structure that is applicable to them. Duty liability on domestic clearances confers on both the access to CENVAT credit scheme. That is not disputed by Revenue. There any dispute on the factum of exports effected by the appellant from the two facilities operated as 100% export oriented units with resultant inevitable accumulation of credit. 7. The scheme of indirect taxation requires that the tax burden is borne by the ultimate consum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gibility for refund is contingent only upon inability to utilize the accumulated credit for discharge of duty liability on clearance of goods domestically. Unlike the limitation of periodic eligibility for recourse to the refund route, utilization is open-ended. This provision obviates the need for explicit provision that the adjudicating authority seeks. 9. The existence of the appellant as an assessee has not been erased, substituted or subsumed at any point in time. The continued existence of the manufacturing facility is not compromised by a hiccup that is rooted in administrative orderliness. The provenance of the accumulated credit is not questioned. The statutory entitlement to regular monetization of the accumulated credit cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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