RAYMOND LIMITED Vs. CCE

JUDGEMENT

(1.) THE appellants, M/s. Raymonds Ltd., are manufacturers of woolen fabrics which they exported as well as sold in the local market. They were availing CENVAT Credit under Rules, 2001/2002. The appellants filed an application before the lower authorities claiming refund of Rs. 6,92,766/ -being the Additional Excise duty (T&TA) paid on inputs used in the manufacture of final product which were cleared under bond. The lower authorities vide Order -in -Original dated 18.2.2003 rejected their claim on the following grounds:

(2.) LEARNED Advocate refers to Rule 3(1) of the CENVAT Credit Rules, 2002, Clause (iii) which reads as follows:

(3.) IN this context, he also refers to Section 11B(2), proviso 1(c) which excludes refund of Credit of duty paid on excisable goods used as inputs from being credited into the Consumer Welfare Fund. According to the learned Advocate Rule 5 has prescribed a separate mechanism through notification and hence cannot be read with Section 11B and therefore, the conditions prescribed under Section 11B will not be applicable in terms of refund claim under Rule 5.