Case Law Details
Rashtriya Chemicals Fertilizers Ltd. Vs Commissioner of Central Tax (CESTAT Hyderabad)
In this case, Rashtriya Chemicals Fertilizers Ltd. appealed against Order-in-Appeal No.31/2011 dated 17.08.2011, concerning their entitlement to exemption notifications 01/2011-CE or 02/2011-CE for the import of Muriate of Potash. The dispute centered on whether they could claim the exemption due to the condition of not availing CENVAT credit.
The Revenue argued that without manufacturing, it was impossible to verify CENVAT credit, thus disallowing the exemption. However, the appellant contended that being an importer from outside India, they couldn’t avail CENVAT credit anyway, as the rules don’t apply beyond Indian borders.
The CESTAT Hyderabad referred to precedent, including the decision by the Supreme Court in Enterprises International Ltd. vs. Commissioner, and SRF Ltd. vs. Commissioner, determining that those outside India couldn’t avail CENVAT credit. Therefore, the appellant was entitled to the exemption notifications for their imports.
Consequently, the impugned orders were set aside, and the appeals were allowed.
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