2012 (4) TMI 632 - Commissioner - Central Excise

Summary

Issues involved:
The judgment involves the issue of entitlement to rebate of duty paid on exported goods, specifically focusing on the manufacturing activity in relation to the goods exported.

Details of the judgment:

Issue 1: Rebate of duty paid on exported goods
The appellant, a manufacturer of excisable goods, filed rebate claims for goods exported via Chennai Port. The goods in question were Mosquito Repellant Machine and Liquid/Refill. The Lower Adjudicating Authority rejected the rebate claim for the Mosquito Repellant Machine portion, which had been imported and not undergone manufacturing activity before export. The appellant contended that the repacking of goods in combi-packs amounted to manufacturing, making them eligible for rebate. The Commissioner held that as per Section 2(f)(iii) of the Central Excise Rules, repacking constitutes manufacturing activity, and cited a previous case supporting a liberal interpretation of export-oriented schemes. Emphasizing the policy of refunding duty paid by exporters to encourage exports, the Commissioner allowed the appeals, setting aside the impugned orders.

Key points:
- The appellant's claim for rebate of duty paid on exported goods was contested due to the lack of manufacturing activity on the imported portion.
- The Commissioner determined that repacking goods in combi-packs constitutes manufacturing activity, making the appellant eligible for rebate.
- A previous case supported a liberal interpretation of export-oriented schemes, emphasizing the substantive fact of export.
- The policy of refunding duty to exporters to promote exports was highlighted as a basis for allowing the rebate claims.