2013 (7) TMI 877 - CGOVT - Central Excise

Denial of rebate claim - Rule 18 of Central Excise Rules 2002 rebate is admissible to supplier of goods to SEZ Unit only and not to a unit situated in SEZ and also that SEZ unit - jurisdictional Assistant Commissioner of Central Excise was not having jurisdiction to sanction rebate claim under Rule 18 of Central Excise Rules 2002 since SEZ unit was located in Pharmez Ahmedabad - Held that - applicant who is receiving the goods from DTA supplier cannot be treated as exporter nor he has exported any goods in terms of said Section 2(m) of the SEZ Act. The SEZ Unit the applicant is a importer of said goods in this case. Hence applicant cannot file the rebate claim under Rule 18 of Central Excise Rules 2002. As such the rebate claim is rightly held inadmissible to the applicants on this count. - Decided against assessee.

Summary

List of Issues:
1. Eligibility for Rebate Claim under Rule 18 of Central Excise Rules, 2002.
2. Jurisdiction of the Assistant Commissioner of Central Excise, Vadodara-II Commissionerate.

Detailed Analysis:

1. Eligibility for Rebate Claim under Rule 18 of Central Excise Rules, 2002:
The applicant, a SEZ unit located in Ahmedabad, received goods (HR Plates) from a registered dealer in the Domestic Tariff Area (DTA). The applicant filed a rebate claim for Central Excise duty paid on these goods, arguing that the supply of excisable goods to a SEZ unit should be treated as a physical export under Section 2(m) of the SEZ Act, 2005, read with Rule 30 of SEZ Rules, 2006. The initial rebate claim was sanctioned by the jurisdictional Assistant Commissioner.

The department contested this on the grounds that under Rule 18 of Central Excise Rules, 2002, the rebate is admissible only to the supplier of the SEZ unit and not to the SEZ unit itself. The Commissioner (Appeals) upheld this view, stating that the SEZ unit, being a deemed importer, cannot claim the rebate benefit meant for exporters. The applicant argued that since the DTA dealer surrendered the No Objection Certificate (NOC) in favor of the SEZ unit, the rebate should be sanctioned to them.

The Government examined Rule 18 of the Central Excise Rules, 2002, which stipulates that the rebate claim is available only if duty-paid goods are exported. The detailed conditions and procedures for eligibility and sanction of rebate claims are provided in Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004. Furthermore, Circular No. 29/2006-Customs, dated 27-12-2006, clarifies that supplies from DTA to SEZ are treated as exports. However, the SEZ unit receiving the goods cannot be treated as the exporter, nor has it exported any goods in terms of Section 2(m) of the SEZ Act, 2005. Therefore, the applicant, being an importer, cannot file a rebate claim under Rule 18 of Central Excise Rules, 2002. The rebate claim was rightly held inadmissible on this count.

2. Jurisdiction of the Assistant Commissioner of Central Excise, Vadodara-II Commissionerate:
The department also argued that the Assistant Commissioner of Central Excise, Vadodara-II Commissionerate, did not have jurisdiction to sanction the rebate claim for a unit situated in the Ahmedabad SEZ. The Commissioner (Appeals) addressed this jurisdictional issue in detail and concluded that the original authority had sanctioned the rebate claim beyond its jurisdiction. The Government concurred with this finding, affirming that the rebate claim was inadmissible on jurisdictional grounds as well.

Conclusion:
The Government found no infirmity in the order of the Commissioner (Appeals) and upheld the decision. The revision application was thus rejected as devoid of merit.