2010 (1) TMI 1093 - Commissioner - Central Excise

Rebate claim - rejection on the ground that the appellant had exported the goods without preparing ARE-1s and had not submitted the copies of ARE-1s along with rebate claims - whether the rebate claims can be allowed in the absence of ARE-1 s? - Held that - the appellant had exported the goods and therefore, the appellant is entitled for rebate claims in the instant case. Non-production of ARE-1s should not come in the way of granting rebate, which is a substantial benefit accruing to the appellant on account of export of goods - due to procedural lapse, substantial benefit cannot be denied to the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues:
- Whether rebate claims can be allowed in the absence of ARE-1s.

Analysis:
The appellant, a dealer holding Central Excise registration, filed rebate claims for consignments of excisable goods exported after paying duties. The claims were rejected due to the absence of copies of ARE-1s. The appellant contended that they had prepared ARE-1s but were refused signatures by Range Officers, leading to export without ARE-1s. They cited legal precedents supporting rebate claims without ARE-1s. During the hearing, the appellant's advocate presented case laws and promised to produce ARE-1s. The Commissioner analyzed the case records and submissions, noting the appellant's regular export practices and previous successful rebate claims. The Commissioner found fault with the Range Officer for refusing to sign ARE-1s, not the appellant.

The Commissioner considered whether rebate claims could be allowed without ARE-1s. Citing legal precedents, the Commissioner concluded that proof of export and duty payment from other documents could justify condoning non-submission of ARE-1s. The appellant submitted shipping bills, airway bills, and central excise invoices as evidence of export. The Commissioner found no dispute regarding duty payment or export, only the absence of ARE-1s. Relying on legal decisions, the Commissioner held the appellant entitled to rebate claims.

The Commissioner emphasized that non-production of ARE-1s should not hinder rebate claims, emphasizing the substantial benefit to the appellant from exporting goods. Referring to a decision by the Hon'ble Gujarat High Court, the Commissioner stressed the importance of procedural requirements serving justice. Additionally, the Commissioner cited a previous case where substantial benefits were not denied due to procedural lapses. Considering the facts and legal principles, the Commissioner allowed the appeal, setting aside the earlier order rejecting the rebate claims.