Per T.K. Jayaraman : This appeal has been filed against Order-in-Appeal No. 16/2004-CE dated 30.1.2004 passed by the Commissioner of Central Excise (A), Cochin.

2. The facts of the case are as follows:

The appellants are manufacturers of transformers. They availed cenvat credit on inputs as well as capital goods. They had exported one transformer to Oman on 3.2.2000. Subsequently, the transformer was re-imported for repairs on free of cost basis on 5.7.2002. The same was exported after repairs on 29.11.2002. For repairs, the appellants used various inputs valued at Rs. 2,81,970/-. The credit availed on the above inputs was to the tune of Rs. 45,115/-. The lower authority held that the activities undertaken on transformers were only repairs and therefore, ordered reversal of the cenvat credit with interest. The appellants approached the Commissioner (A) who upheld the order of the lower authority. The Commissioner (A) held that repair does not amount to manufacture and hence, the input credit would not have been paid and therefore, he upheld the order of the lower authority. The appellants are aggrieved over the impugned order and have come before this Tribunal for relief.

3. Shri V. Gangadharan, Representative of the Company appeared on behalf of the appellant and Shri R.K. Singla, JCDR for the Revenue.

4. Shri V. Gangadharan, Co. Rep. invited out attention to Notification No. 43/2001-CE non-tariff dated 26.6.2001 notifying the conditions, safeguards and procedures for procurement of the excisable goods without payment of duty for the purpose of use in the manufacture or processing of export goods and their exportation out of India, to any country except Nepal and Bhutan. In Rule 19 of the said rules, the expression 'export goods' has been used. This refers to excisable goods (dutiable or exempted) as well as non-excisable goods. Thus, the benefit of input stage rebate can be claimed on export of all finished goods whether excisable or not. Further the materials as defined in the said Rule 19 may be used for manufacture or processing. In other words, any processing not amounting to manufacture (such as packing, blending, etc.) will also be eligible for the benefit under the said Notification. The above provision is contained in the Central Excise Manual Published by the Board in Part VI relating to "Manufacture of Export Goods in Bond".

5. The learned JCDR fairly conceded the view point of the appellant.

6. We have gone through the records of the case carefully. The goods on which cenvat credit have been availed were used in the repair of the transformers which was re-exported. In other words, the inputs used in the repairs are contained in the goods exported. The provisions pointed out by the learned Representative of the appellant provided for excise rebate even in respect of inputs used in the processing of export goods. In these circumstances, there is no merit in the impugned order passed by the Commissioner (A). There is no necessity for reversing the credit. Hence, we allow the appeal with consequential relief, if any.