2011 (3) TMI 724 - AT - Central Excise

Refund - Re-export - Defective inputs exported back to the original supplier - Additional duty amount was reversed at the time of removal of the defective inputs for export - Duty was paid when the inputs were imported - Therefore, there is no valid reason for rejecting the claim for refund of import duty on the ground of procedural lapse - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal for refund of Rs. 1,53,446.01 filed by manufacturers of knitting machines and parts. The claim was initially denied due to procedural lapse in exporting defective inputs without following Central Excise Rules, but the Tribunal ruled in favor of the appellants as duty was paid on import and reversed upon export.