2006 (12) TMI 401 - Commissioner - Central Excise

Summary

Issues involved: Whether the appellants were entitled for rebate claim under Rule 18 of the Central Excise Rules, 2004.

Summary:
The appellants, holders of Central Excise Registration for manufacturing MS Sheets/Coils, exported Refractory Material and lodged rebate claims which were rejected on the grounds that the reversal of Cenvat credit at the time of export was not considered as duty. The appellants appealed against this decision.

Upon review, the Commissioner found that the lower authority's contention that the amount paid at the time of export was a reversal of amount and not duty was not sustainable. Cenvat Credit Rules clearly state that the amount paid at the time of removal of inputs should be considered as duty. The Commissioner referred to a judgment by the Allahabad High Court emphasizing the need to interpret statutes liberally to uphold legislative intent.

The Commissioner noted that the lower authority did not dispute the actual export of goods and that duty payment on exported goods was not in question. Therefore, there was substantial compliance with Rule 18, entitling the appellants to the rebate. The impugned order rejecting the rebate claims was set aside, and the appeal was allowed with consequential relief.