M/S Rajguru Impex (India) Pvt.Ltd vs Commissioner, Central Excise & Service ...

Appeal No.E/920/2012-DB [Arising out of OIA No.SRP/75/VAPI/2012-13, dt.10.10.2012, passed by Commissioner (Appeals), Central Excise & Service Tax, Vapi]

M/s Rajguru Impex (India) Pvt.Ltd. Appellant

Vs

Commissioner, Central Excise & Service Tax, Vapi Respondent

Represented by:

For Appellant: Shri Hardik Modh, Advocate For Respondent: Shri S.K. Shukla, Authorised Representative

For approval and signature:

Honble Mr. P.K. Das, Member (Judicial) Honble Mr. P.M. Saleem, Member (Technical)

1. Whether Press Reporters may be allowed to see the No Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3. Whether their Lordships wish to see the fair copy of Seen the order?

4. Whether order is to be circulated to the Departmental Yes authorities?

CORAM:

HONBLE MR. P.K. DAS, MEMBER (JUDICIAL) HONBLE MR. P.M. SALEEM, MEMBER (TECHNICAL)

Date of Hearing/Decision:17.06.2015

Order No. A/10810 / 2015 dt.17.06.2015

Per: P.K. Das

Heard both the sides and perused the records.

2. The Appellants were engaged in the manufacture of Kitchen items. The Appellants exported 100% of the manufactured items. The Adjudicating authority disallowed the CENVAT Credit on the ground that the inputs are used in the exempted final product. Further, the final product was cleared without furnishing bond. We find that the issue is no more res integra in view of the various decisions of Hon'ble High Court and Tribunal as under:-

i) Repro India Ltd Vs Union of India 2009 (235) ELT 614 (Bom.)

ii) CCE Vs Drish Shoes Ltd 2010 (254) ELT 417 (H.P.)

iii) Well Known Polyesters Ltd Vs CCE Vapi 2011 (267) ELT 221 (Tri-Ahmd)

iv) Jyoti Capsules Vs CCE Kanpur 2009 (236) ELT 667 (Tri-Del)

3. In the case of Drish Shoes Ltd (supra), the question before the Hon'ble Himachal Pradesh High Court was whether an assessee exclusively manufacturing wholly exempted goods chargeable to Nil tariff rate of duty is eligible to avail CENVAT Credit of duty paid on said inputs and input services under Rule 6(1) of the CENVAT Credit Rules, 2002/CENVAT Credit Rules, 2004, used in the manufacture of such exempted goods, even if such goods are exported. The Hon'ble High Court held that an assessee manufacturing the goods chargeable to Nil duty, is eligible to avail CENVAT Credit paid on the inputs under the exception clause to Rule 6 (1) as contained in Rule 6(5) of CENVAT Credit Rules 2002 and Rule 6(6) of CENVAT Credit Rules 2004, used in the manufacture of such goods, if the goods are exported.

4. In the present case, there is no dispute that the entire goods were exported. Hence, there is no reason to deny the CENVAT Credit to the Appellant. Accordingly, the impugned order is set aside. The appeal filed by the Appellant is allowed.

(Dictated & Pronounced in Court)

(P.M. Saleem) (P.K. Das) Member (Technical) Member (Judicial)

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