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TMI Blog2018 (12) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... 992. Both units opted out of the scheme and, upon debonding on 29th September 2008 and 29th January 2009 respectively, had balances of Rs. 93,64,988 and Rs. 1,33,38,504 in their CENVAT credit account arising from inputs, capital goods and input services procured by them. Proceedings were initiated against them to deny them continuity of the credit and for recovery of Rs. 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 Rs. 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, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r tax, liability suffered on procurement of goods or services. Hence, for all practical purposes, these are no different from the normal assessees registered under Central Excise Act, 1944. 4. According to Learned Counsel for appellant, the denial was based on narrow examination of applicability of rule 10 of CENVAT Credit Rules, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme without any compulsion to avail the exemption. The alternative of other neutralization facilities are not, therefore, excluded to such holders. 6. Whether holding the title to those privileges or not, all manufacturers, other than those operating outside the 'customs territory', are registered under the Central Excise 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bonding units. At the same time, rule 5 of CENVAT Credit Rules, 2004 entitle exporting units, including '100% export oriented units', to claim refund of such accumulated credit at periodic intervals. Non-recourse to this privilege does not exclude them from entitlement to such. It may also be worth noting that the eligibility 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, su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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