2011 (9) TMI 924 - CGOVT - Central Excise

Summary

Issues:
- Rebate claim of Central Excise duty for goods exported through a merchant exporter.
- Application of unjust enrichment clause under Section 11B of the Central Excise Act, 1944.
- Admissibility of rebate claim under Rule 18 of Central Excise Rules, 2002.

Analysis:
1. Rebate Claim and Unjust Enrichment Clause:
The applicant, a manufacturer of Screw conveyor parts, filed rebate claims for Central Excise duty on goods exported through a merchant exporter. The original authority rejected the rebate claims citing unjust enrichment under Section 11B of the Central Excise Act, 1944. They argued that since the duty liability was initially borne by the applicant but later passed on to the merchant exporter, the rebate claims were not permissible. The Commissioner (Appeals) upheld this decision.

2. Applicant's Grounds for Revision:
The applicant contended that they immediately credited the excise duty amount to the merchant exporter upon invoicing the goods for export. They argued that the duty amount was not charged separately to the merchant exporter, as it was already included in the invoice price. The applicant emphasized that they had paid the duty twice - first by crediting the amount to the merchant exporter and then by paying it to the government. They also highlighted the submission of a No Objection Certificate from the merchant exporter for the rebate claim.

3. Government's Decision:
The Government reviewed the case records and noted that the applicant had shown the value of goods and duty paid separately on relevant documents. They found that the rebate claim for duty paid on exported goods was not in violation of the unjust enrichment clause. The Government observed that the practice of crediting duty amounts to the merchant exporter was consistent and had been accepted by the department previously. Therefore, the Government allowed the revision applications, setting aside the impugned orders and ruling in favor of the applicant.

4. Conclusion:
The Government's decision clarified that the rebate claim for Central Excise duty on exported goods was admissible to the applicant under Rule 18 of Central Excise Rules, 2002. The judgment emphasized the consistent practice of crediting duty amounts to the merchant exporter and the lack of dispute regarding the export of duty-paid goods. The revision applications succeeded based on these grounds, and the impugned orders were overturned in favor of the applicant.