BALA HANDLOOMS EXPORTS COMPANY LTD. Vs. CCE

JUDGEMENT

(1.) THE impugned order has upheld rejection of two refund claims totaling above Rs. 12 lakhs being the accumulated CENVAT credit pertaining to the last quarter of 2004 and the first quarter of 2005 in the account of M/s. Bala Handlooms Export Company (BHEC), Chennai. These two appeals have been filed by BHEC. The appellant generally procures yarn and gets it bleached, dyed, converted into fabrics and embroidered through job workers. Occasionally they also purchase fabrics of Chapter Heading 5406. These and the job worked goods are exported. As per the impugned order, the refund in question relates to credit of duty paid on purchased fabrics of CSH 5406 which were exported. The lower authorities have denied the refund of credit under Rule 5 of CENVAT Credit Rules (CCR) on the ground that the appellants had not undertaken any process of manufacture on the fabrics (inputs) received. As per the orders the purchased inputs were subjected to the following operations before export.

(2.) REMOVING dust and excess starch.

(3.) SPECIAL folding to give crease