2012 (8) TMI 986 - CGOVT - Central Excise

Summary

Issues:
The issues involved in this case are the denial of rebate claim by the adjudicating authority based on the amendment in Notification No. 43/2001, the violation of conditions of bond by exporting goods on payment of duty under rebate claim, and the retrospective applicability of the amending provision introduced in Notification No. 43/2001.

Denial of Rebate Claim:
The respondent had procured inputs without duty payment under Notification No. 43/2001 for manufacturing final products, which were then exported after paying duty. The rebate claim of the applicant was rejected as the goods were exported under a different notification. The Commissioner (Appeals) allowed the appeal, stating that the goods were deemed exported before the amendment. However, the applicant argued that the goods were exported after the amendment, making them ineligible for rebate.

Violation of Bond Conditions:
The applicant had executed a General Bond undertaking to export goods without duty payment, but they exported the goods on payment of duty under rebate claim. This action was deemed a violation of the conditions of the bond and the notification under which duty-free inputs were procured.

Retrospective Applicability of Amendment:
The amendment in Notification No. 43/2001 introduced an Explanation-II clarifying that goods manufactured using duty-free inputs must be exported under specific rules. The applicant contended that the goods were exported before the amendment, while the department provided evidence that the goods were actually exported after the effective date of the amendment. The government analyzed the relevant legal provisions and previous judgments to determine the date of export and upheld the denial of rebate claims under the amended notification.

Conclusion:
The Central Government reviewed the case records and concluded that the goods were exported after the amendment in the notification, making the rebate claims ineligible. The impugned orders-in-appeal were set aside, and the original orders-in-original were restored, thereby succeeding the revision applications.