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Kancor Ingredients Ltd vs. Ce &Cgst Noida - (Customs, Excise and Service Tax Appellate Tribunal) (20 May 2024)

Refund of accumulated Cenvat Credit is allowable on export of goods, even if, they are exempted from payment of Central Excise Duty

MANU/CN/0097/2024

Excise

Present appeal has been filed by Kancor Ingredients Limited against Order-in-Appeal passed by the Commissioner (Appeals) CGST, Noida. The learned Commissioner (Appeals) has upheld the rejection of refund claim for Rs.4,00,278.The main issue in present appeal is as to whether refund of accumulated Cenvat Credit is allowable on export of goods which are exempted from payment of duty, particularly when the same has not been exported under bond.

The Appellant has been allowed refund for the prior period. This issue is no more res integra. It is by now the settled law that, refund of accumulated Cenvat Credit is allowable on export of goods even if they are exempted from payment of Central Excise Duty. It has also been the settled law that export under bond is only a procedure. The claim for refund should not be disallowed when the fact of export is not in dispute.

In the case of Commissioner of Central Excise vs. Drish shoes Limited, High Court of Himachal Pradesh was also examining the similar issue. It held that input credit is allowable, when exempted goods are exported under bond. Refund under Rule 5 of CCR, 2004 is allowable to the manufacturer, who exports the final products which are exempt from duty.

Appellant is eligible for Cenvat Credit of input and input services which are used in export of goods and are exempted from payment of Central Excise Duty. In terms of Rule 5 of CCR, 2004, they are eligible for refund of accumulated Cenvat Credit attributable to export of goods. Non submission of bond is only a procedural lapse.The impugned order cannot be sustained and is accordingly set aside. Appeal allowed.

Tags : CENVAT CREDIT   REFUND   ELIGIBILITY  

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