2011 (7) TMI 1096 - CGOVT - Central Excise

Summary

Issues:
- Rebate claim for duty paid on inputs used in manufacturing of exported goods under Rule 18 read with Notification No. 21/2004-C.E. (N.T.)
- Export of goods under Bond without payment of Excise Duty under Rule 19 of Central Excise Rules, 2002
- Compliance with procedural requirements of export schemes under Rule 18 and Rule 19
- Government's decision on admissibility of rebate claim under Rule 18

Analysis:
The case involved a revision application filed by M/s. Auto Steels against the Order-in-Appeal rejecting their rebate claim for duty paid on inputs used in the manufacture of exported goods. The original authority had observed that the goods were removed for export under UT-1 without payment of Central Excise duty under Rule 19 of the Central Excise Rules, 2002. The applicants argued that the substantive condition for rebate is the export of goods and realization of money, and procedural conditions should not deny the rebate if substantive compliance is met. They contended that they had proven the export and duty payment, and any procedural lapses were rectifiable. The applicants claimed that the goods were exported under bond and were eligible for rebate under Rule 18 read with Notification No. 21/2004. They emphasized that non-compliance with procedural conditions should not disentitle them from the benefit of rebate.

The Government carefully reviewed the case records and noted that the applicant had exported goods under bond without paying excise duty on finished goods under Rule 19, but filed a claim for rebate under Rule 18. The Government emphasized that exporters must fulfill all conditions and procedural requirements of the chosen scheme, whether under Rule 18 or Rule 19. Since the applicant exported goods under Rule 19, they were not entitled to the benefits of Rule 18. The Government cited the importance of following prescribed procedures to prevent fraud and administrative inconveniences, as highlighted in previous legal judgments. Consequently, the Government found the rebate claim under Rule 18 inadmissible in this case, upholding the Order-in-Appeal's decision.

In conclusion, the revision application was rejected by the Government for lacking merit, and the Order-in-Appeal was upheld. The case underscores the significance of adhering to the specific export schemes' conditions and procedural requirements to determine the eligibility for rebate claims under the Central Excise Rules.