2003 (10) TMI 432 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 48/77-C.E. regarding the treatment of goods exported under bond as duty paid clearances.

Analysis:
1. The appeals raised the question of whether goods exported under bond can be considered as duty paid clearances as per Notification No. 48/77-C.E., dated 1-4-1977. The appellant argued that exports under bond should be treated the same as exports under claim for rebate, citing the case of HPCL v. CCE - 1995 (77) E.L.T. 256 (S.C.). Additionally, reference was made to the case of N.B. Sanjana v. The Elphinstone Spinning & Weaving Mills Co. Ltd. - 1978 (2) E.L.T. (J 399), which defined duty paid as duty that ought to have been paid. The contention was that goods exported under bond should be considered duty paid since no duty is required to be paid on such exports.

2. Upon review of the case records and relevant case laws, the Tribunal noted that Notification No. 48/77 exempts samples of medicaments based on a percentage of total duty paid clearances of medicines, without specifying any exclusion for exported medicines. The lower authorities had already included exported medicines under claim for rebate in the calculation of duty paid clearances. Following the principles established in the cited case laws, the Tribunal concluded that it is permissible to treat exports under bond as duty paid clearances, especially when no duty is payable on such exports.

3. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellants, granting them consequential benefits based on the interpretation of Notification No. 48/77-C.E. and the treatment of goods exported under bond as duty paid clearances.