Facts –

• The Appellant, M/s Industrial Engineers & Consultants Pvt. Ltd., is engaged in the manufacturing of parts used for installation of dish antenna, towers, earthing etc.
• The authorities noticed that 5 items namely copper strips, cables, lights, copper fasteners and paints had not undergone any process of manufacturing within the meaning of Section 2(f) of the Central Excise Act, 1944 were exported as such by the appellant.
• Show Cause notice dated 19.03.2015 was issued for recovery of availed Cenvat Credit of Rs.11,81,724/-.
• The Commissioner (Appeals), Raigarh, in its order, allowed credit in respect of cables and refused credits in respect of rest 4 items and held that the process undertaken by the Appellant does not amount to manufacture and there is no other provision available for availing Cenvat Credits against removal of inputs or capital goods for exports as Appellant had not availed rebate under Rule 18 of the Central Excise Rules, 2004.
• Aggrieved, an appeal was filed.

Issue –

• Whether the process undertaken by the Appellant amount to manufacture and will enable it to avail CENVAT Credit?

Order –

• The Hon’ble Tribunal observed that even if inputs are assumed to have been cleared as such, they are duty paid excisable goods which were cleared under bond in terms of Notification issued under Rule 19 which does not provide for reversal of credit of duty paid on such exported excisable goods because legislative intent was to promote export of goods and not export of taxes.
• The Tribunal also held that goods covered under Section 6 of the Central Excise Tariff Act, 1985, dealing with television image and sound recorders, incomplete or unfurnished goods having essential character of complete or finished article shall also amount to manufacture.
• Relying on Bala Handlooms Exports Co. Ltd. Vs. CCCE, Chennai, the Tribunal held that inputs used as intermediate products when clear for export also provides for refund of Cenvat Credit.
• In the case of Commissioner of Central Excise, Pune Vs. Telco Ltd., it was held that retention of credit on inputs exported under bond and its availability to the exporter even without an acceptable definition of manufacturer was held in favour of the assesee.
• The Tribunal in the present case held that Appellant is entitled the entire Cenvat Credit of Rs.11,81,724/- on those 4 items namely copper strips, lights, copper fasteners and paints with consequential relief.
• Hence, the appeal is allowed.