2010 (10) TMI 880 - CGOVT - Central Excise

Revision application - rebate claims denied as original, duplicate and triplicate copy of ARE-1, duplicate copy of invoice were not enclosed with the said claims - Held that - Government observes that instead of rejecting the rebate claims for non-submissions of the original copies of the ARE-1s purportedly lost by the applicant as per FIR lodged with the Police authorities, the Asstt. Commissioner should have considered collateral evidence to verify whether the duty paid goods have actually been exported or not, Government sets aside the impugned orders and remands the case back to the original adjudicating authority to decide the case afresh after giving proper opportunity to the applicant who may submit all requisite collateral evidences/documents to prove the export of duty paid goods as per provisions of Notification No. 19/2004-C.E. (N.T.), dated 6-9-04 read with Rule 18 of Central Excise Rules, 2002, order-in-appeal and order-in-original are set aside, Revision application is being disposed in above terms.

Summary

Issues involved:
Rejection of rebate claims due to missing original documents, Consideration of collateral evidence for proving export of duty paid goods, Adherence to statutory requirements for claiming rebate, Loss of documents and its impact on statutory right to rebate, Dispute regarding the acceptance of reconstructed/copied documents for rebate claims.

Analysis:
1. Rejection of Rebate Claims: The revision application was filed against the rejection of four rebate claims by the Asstt. Commissioner, Central Excise, Raigad. The claims were rejected due to missing original documents like ARE-1 copies and invoices, as observed during scrutiny. The Asstt. Commissioner issued a deficiency memo-cum-show cause notice, leading to the rejection of the claims in the order-in-original.

2. Consideration of Collateral Evidence: The Commissioner (Appeals) held that the right to rebate is granted by statute, and while original documents are preferred evidence, the law allows for collateral evidence or reconstructed copies to prove export details and duty payment. In this case, the loss of original documents by the applicant's representative did not extinguish the statutory right to rebate. The impugned order was set aside on these grounds.

3. Adherence to Statutory Requirements: The revision application highlighted non-adherence to statutory requirements for claiming rebate, citing provisions from Notifications and Central Excise Rules. The absence of original statutory documents was emphasized as hindering the verification of duty payment and export nature of goods, as per CBEC's Excise Manual instructions.

4. Impact of Loss of Documents: The applicant argued that the loss of original documents should not lead to denial of rebate, especially when physical export and duty payment were certified by relevant authorities. The contention was made that the Maritime Commissioner could have verified documents directly with Customs and Central Excise Authorities instead of rejecting the claim solely on technical grounds.

5. Dispute over Acceptance of Reconstructed/Copied Documents: The issue of accepting reconstructed/copied documents for rebate claims was raised, with the applicant relying on circulars and orders emphasizing that rebate claims should not be rejected on technical grounds. The applicant defended discrepancies in dates on documents as clerical mistakes and emphasized the alignment of various details across different paperwork.

6. Government's Decision: The Government, after considering submissions and lower authorities' orders, set aside the impugned orders and remanded the case for a fresh decision. The original adjudicating authority was directed to allow the submission of collateral evidence/documents to prove the export of duty paid goods in accordance with statutory provisions.

In conclusion, the judgment focused on the importance of statutory compliance, the consideration of collateral evidence in the absence of original documents, and the need to verify duty payment and export through acceptable means to grant rebates effectively.