2004 (1) TMI 416 - AT - Central Excise

Summary

Issues:
- Entitlement to rebate/refund of duty paid on goods exported.

Analysis:
1. The only issue in this appeal is whether the respondents are entitled to the rebate/refund of the duty paid on goods exported by them. The adjudicating authority disallowed the refund, stating that there was no established nexus between the goods cleared by the manufacturer and the goods exported by the appellants. However, the Commissioner (Appeals) allowed the rebate/refund.

2. Upon review, it was found that the goods were manufactured by M/s. Vinod Industrial Corporation but were cleared by them in favor of M/s. Vinod Tools Pvt. Ltd. The goods were allegedly exported by M/s. Vinod Tools Pvt. Ltd., not by the manufacturer. The rebate on duty paid goods exported can only be claimed when the goods are exported directly from the factory by the manufacturer. As per the records, the goods were exported by M/s. Vinod Tools Pvt. Ltd., who was not the manufacturer, and no evidence was presented to establish that the exported goods were the same as those cleared by the manufacturer.

3. The Commissioner (Appeals) referred to a circular relaxing the condition of non-export from factory premises, stating that once proof of actual export is provided, the rebate is allowed. However, the judgment clarified that the rebate can only be claimed by the manufacturer-exporter who paid the duty on the goods while clearing them from the factory. In this case, the exporter was not the manufacturer nor had paid duty on the exported goods. The rebate can only be claimed by the manufacturer, not by an exporter who did not purchase the goods by paying the full price and duty to the manufacturer.

4. The Commissioner (Appeals) allowed the rebate based on the absence of dispute regarding the duty paid character of the goods and their export. However, it was emphasized that the conditions stipulated in the notification must be met. As the goods were not exported directly by the manufacturer, the rebate could not be claimed by the respondents. Therefore, the impugned order was set aside, and the appeal of the Revenue was allowed.

This detailed analysis of the judgment highlights the key issues involved and the reasoning behind the decision regarding the entitlement to rebate/refund of duty paid on exported goods.