2008 (3) TMI 560 - AT - Central Excise

Summary

Issues: Alleged export of excisable goods without proper documentation and duty payment below exemption limit.

In this case, the appellant was accused of exporting excisable goods without executing necessary documents like LUT/Bond and ARE-1s, and without providing proof of export signed by Customs authorities. The appellant, being an SSI unit, cleared the goods without duty payment as the total value was below Rs. 100 lakhs under a specific notification. The Tribunal referred to a previous case and a circular to establish that SSI units within the exemption limit are not required to follow certain procedures. The appellant provided evidence, including invoices, packing lists, shipping bills, and bank certificates, to prove proper export. Both lower authorities did not dispute this evidence. The duty demand was based on the lack of LUT/Bond and ARE-1, but as per rules, SSI units exporting goods are not mandated to follow the ARE-1 procedure. Consequently, the demand for duty on the exported goods was deemed unsustainable, leading to the setting aside of the impugned order and allowing the appeal with consequential relief.