Custom, Excise & Service Tax Tribunal
M/S. Lakshmi Automatic Loom Works Ltd vs Cce, Coimbatore on 6 January, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/40219 and 40220/2014
(Arising out of Order-in-Appeal No.342 & 343/2013 dated 28.10.2013 passed by the Commissioner of Central Excise (Appeals), Coimbatore)
M/s. Lakshmi Automatic Loom Works Ltd. Appellant
Vs.
CCE, Coimbatore Respondent
Appearance Shri K.S. Venkatagiri, Advocate for the Appellant Shri R. Subramanian, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 06.01.2016 Final Order No. 40037-40038 / 2016 The precise question of learned counsel is that when the intermediate goods were cleared by the appellant to the EOU and such goods having undergone processing by EOU resulting in output that was exported by that EOU Whether shall disentitle the appellant to refund of Unutilised Credit under Rule 5 of the CENVAT Credit Rules, 2004. He says that the answer should be in favour of the assessee for the reason that even the intermediate goods can be exported without payment of duty as covered by the said Rule. That rule having undergone amendment from 17.3.2012, appellants claim is undeniable.
2. Revenue supports the adjudication.
3. There is no doubt that Revenue has conceived that the goods cleared by the appellant were intermediate goods and were cleared to EOU. The said EOU after processing that had exported. The finished goods arose out of that. Therefore, the appellant satisfied the condition of Rule 5(1) of CENVAT Credit Rules, 2004 effectuating export of the goods in question through the EOU. However the relief of refund of unutilised credit shall be subject to the working out of the quantum thereof in terms of in the formula prescribed by that Rule. There should be no dispute at all in respect of the calculation of quantum of refund applying the respective formula.
4. In the result, matter is remanded to the adjudicating authority to calculate the appropriate amount of refund admissible as per the formula prescribed by Rule 5 of CENVAT Credit Rules, 2004 and grant the same to the appellant as expeditiously as possible.
5. With the aforesaid direction, both the appeals are remanded to the adjudicating authority.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2