9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 938 - CGOVT - Central ExciseRevision applications - rebate claims in cash - clearance of the finished goods manufactured by them for home consumption as well as for export under claim for rebate of duty paid on goods Held that - clearances made by the applicants under Notification No. 29/2004-C.E. & 30/2004-C.E., dated 9-7-2004 which were reported to have tallied with the records maintained by the applicants. The fact that party was maintaining separate accounts is not disputed by the department, rebate of duty paid on export goods under Notification No. 29/04-C.E., dated 9-7-2004 is admissible to the applicants. The impugned order-in-appeal is set aside and the order-in-original is restored, Revision Applications succeed
Issues Involved:
1. Applicability of Notification No. 30/2004-C.E. and Notification No. 29/2004-C.E. 2. Entitlement to rebate/refund of duty paid on exported goods. 3. Maintenance of separate accounts for availing benefits under both notifications. 4. Legality of the Commissioner (Appeals) decision based on previous case law. 5. Compliance with Board Circulars and clarification on rebate claims. Issue-wise Detailed Analysis: 1. Applicability of Notification No. 30/2004-C.E. and Notification No. 29/2004-C.E.: - The applicants, engaged in the manufacture of cotton and blended yarns, processed fabrics, and woven fabrics, were availing benefits under both Notification No. 30/2004-C.E. (full exemption from duty if no cenvat credit on inputs is taken) and Notification No. 29/2004-C.E. (partial exemption with a duty rate of 4% or 8%). - The department contended that the applicants, by not availing cenvat credit on inputs, should clear goods at NIL rate under Notification No. 30/2004-C.E. However, the applicants argued that they were entitled to choose between the notifications and had opted for Notification No. 29/2004-C.E. for certain clearances. 2. Entitlement to Rebate/Refund of Duty Paid on Exported Goods: - The applicants claimed rebate of the actual duty paid on exported goods under Rule 18 of the Central Excise Rules, 2002, arguing that the rebate should be based on the actual duty paid (4% or 8%) irrespective of the effective rate of duty. - The Commissioner (Appeals) had denied the cash rebate and allowed re-credit only, citing that no duty was required to be paid under Notification No. 30/2004-C.E. The applicants contended that this decision was contrary to Rule 18 and previous case law. 3. Maintenance of Separate Accounts for Availing Benefits Under Both Notifications: - The applicants maintained separate accounts for goods cleared under Notification No. 29/2004-C.E. and Notification No. 30/2004-C.E., as required by Board Circular No. 795/28/2004-CX and Circular No. 845/3/2006-CX. - The government observed that the applicants were entitled to avail both notifications simultaneously, provided they maintained proper records, which they did. 4. Legality of the Commissioner (Appeals) Decision Based on Previous Case Law: - The Commissioner (Appeals) relied on the case of Nahar Industrial Enterprises, where the revisionary authority allowed cash rebate only to the extent of 4% and re-credit for the remaining duty. - The applicants argued that their case was different as they had paid duty at concessional rates (4% or 8%) under Notification No. 29/2004-C.E. and were not claiming the higher tariff rate rebate. - The government distinguished the present case from Nahar Industrial Enterprises, noting that the applicants had opted for simultaneous availment of both notifications and maintained separate records. 5. Compliance with Board Circulars and Clarification on Rebate Claims: - The government referred to Board Circular No. 687/3/2003-CX, which clarified that duty paid through actual credit on exported goods must be refunded in cash. - The applicants' claim for cash rebate was supported by this circular, and the government found that the Commissioner (Appeals) erred in denying the rebate in cash. Conclusion: - The government set aside the impugned order-in-appeal and restored the order-in-original, granting the applicants the rebate of duty paid on exported goods under Notification No. 29/2004-C.E. - The revision applications succeeded with consequential relief, affirming the applicants' entitlement to cash rebate for the actual duty paid on exports.
|
