Deemed exports – no refund of CENVAT Credit – Board communicates TIOL case law
We have been immodestly claiming that the best way to win legal battles is by logging on to TIOL. Now the wise government also seems to have realised this. A case reported by us, Refund of unutilized CENVAT credit – Deemed Exports are not physical exports - Since the appellant has not physically exported the goods but merely supplied the goods to 100% EOU , the provisions of Rule 5 of Cenvat Credit Rules, 2004 are not applicable - CCE , Pune II Vs Quality Screens reported in , has caught the attention of the Department.
So the Board clarifies that the provisions of Rule 5 of the CENVAT Credit Rules, 2004 are not applicable. The remedy lies in claiming refund of terminal excise duty from the Ministry of Commerce as per the Foreign Trade Policy and the provisions in the Handbook of Procedures (Vol. 1).
Board wants the field to take note of the CESTAT order.
CBEC 's F. No. 267/124/2007 CX 8 Dated : March 24, 2008