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2012 (12) TMI 968 - CGOVT - Central ExciseDenial of rebate claim - applicant exported the goods after more than 2 years from the date on which the goods were cleared from factory - failure to obtain the extension from Jurisdictional Commissioner - Held that - applicant initially exported the goods covered vide 8 AR4/ARE s of year pertaining to 1998 and 2000 under bond without payment of duty. However, they failed to export the goods within stipulated time/extended time and paid duty applicable on such goods vide TR-6 challan dated 22-6-2000 and also vide entry in RG 23 Pt. II dated 22-6-2000. Subsequently, in 2003, after receiving fresh export orders, they cleared the goods. The applicant filed rebate claim of duty paid by them vide abovesaid TR-6 challan and entry in RG 23 Pt. II, both dated 22-6-2000. Government finds that the said duty was paid by the applicant for the reasons of failure to export the goods under Bond. It cannot be claimed as rebate under Rule 18 of Central Excise Rules, 2002. However, applicant exported the goods subsequently and is claiming rebate. Goods are exported after lapse of 6 months period from the date of clearance of goods for export from factory. Applicant has not produced any valid permission from the competent authority to export said goods after 6 months. The applicant has violated the provisions of Condition 2(b) of Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 and failed to make compliance of said mandatory condition. Therefore, the rebate claim is not admissible to the applicants under Rule 18 of Central Excise Rules, 2002 r/w Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004. - Decided against assessee.
Issues Involved:
1. Timeliness of export after initial clearance. 2. Compliance with the conditions of Notification No. 40/2001-C.E. (N.T.). 3. Validity of rebate claims under Rule 18 of Central Excise Rules, 2002. Detailed Analysis: 1. Timeliness of Export After Initial Clearance: The applicant, M/s. Tata Motors Ltd., initially cleared goods for export under bond from the factory under eight AR4/AREs. However, due to the cancellation of their export order, the goods were not exported as initially planned. The Central Excise duty amounting to Rs. 68,307/- was paid via TR6 challan dated 22-6-2000, and Rs. 466,239/- was paid through an entry in RG 23 Pt. II. These goods were subsequently exported in 2003 under two ARE 1s upon receipt of a fresh export order. The original authority sanctioned the rebate claims, but the department appealed on the grounds that the goods were exported after more than two years from the date of initial clearance and without obtaining the necessary extension from the Commissioner of Central Excise. 2. Compliance with the Conditions of Notification No. 40/2001-C.E. (N.T.): The applicant contended that the goods were exported, the applicable excise duty was paid, and the rebate claim was filed within the stipulated time limit as per Section 11B of the Central Excise Act, 1944. They argued that the conditions of Notification No. 40/2001-C.E. (N.T.) and the Board's Circular dated 30-1-1997 were met. They obtained extensions for the export and paid the duty before the extension lapsed. The Range Superintendent inspected the goods, which were identifiable by their chassis and engine numbers, and signed fresh ARE-1 forms, allowing the physical export of the vehicles. The applicants maintained that the findings of the Commissioner (Appeals) regarding the non-observance of conditions were factually incorrect. 3. Validity of Rebate Claims Under Rule 18 of Central Excise Rules, 2002: The Government observed that the applicant initially exported the goods under bond without payment of duty but failed to do so within the stipulated or extended time, leading to the payment of duty. The rebate claim was filed for the duty paid due to the failure to export under bond. According to Rule 18 of Central Excise Rules and Notification No. 40/2001-C.E. (N.T.), the goods must be exported within six months of their clearance from the factory. The applicant did not produce any valid permission to export the goods after six months, violating Condition 2(b) of Notification No. 19/2004-C.E. (N.T.). Therefore, the rebate claim was deemed inadmissible. Conclusion: The Government found no legal infirmity in the Order-in-Appeal and upheld the decision, rejecting the revision application as devoid of merit. The key reasons were the failure to export within the stipulated time and non-compliance with the mandatory conditions of the relevant notifications. The rebate claim was not admissible under Rule 18 of Central Excise Rules, 2002, read with Notification No. 19/2004-C.E. (N.T.).
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