Assistant Commissioner of Central Excise Vs Valli Textile Mills (Madras High Court)
Madras High Court dismissed the writ appeals and held that rejection of rebate claim by taking stand that cenvat credit has lapsed in view of rule 11(3)(i) of the Cenvat Credit Rules, 2004 [CCR 2004] is not tenable.
Facts- The writ petitioner is a company engaged in manufacture of cotton yarn, cotton fabrics and knitted fabrics falling under Chapter 52 and 60 of Central Excise Tariff and polyester cotton blended knitted fabrics falling under Chapter 60. They have been clearing the same for home consumption as well as for exports. They filed rebate claims in one case for Rs.2,78,334/- and in another case for Rs.67,10,159/- for the duty paid on exported goods. In the first case, the rebate was originally sanctioned but in the second case, the rebate claim was rejected.
Show cause notices dated 25.11.2008 and 24.10.2008 were issued by the Assistant Commissioner of Central Excise, Virudhunagar Division taking the stand that in view of Rule 11(3)(i) of Cenvat Credit Rules, 2004, the assessee cenvat credit had lapsed.
Commissioner(A) allowed the appeal. The revenue filed applications before the Central Government and the same were allowed. The learned Single Judge allowed the petitions and the orders passed by the government in revision application were set aside. Thus, these intra-court appeals have been filed.
