2012 (11) TMI 771 - AT - Central Excise

Whether the respondent-assessee is required to reverse 8% of the total value of the exempted goods which are exported by him Held that - Respondent-assessee herein has exported the goods by filing AR-4/ARE-1 form with the authorities and indicating the products exported - products were exported by the respondent-assessee by debiting amount in bond executed by them, a fact which is not disputed by the lower authorities - product which has been cleared by the appellant by debiting under bond with the authorities would be an act, would be covered by the law - order is upheld and the appeal filed by the Revenue is rejected

Summary

Issues:
1. Reversal of 8% of total value of goods exported by appellant not liable for Excise duty.

Analysis:
The appeal and cross objection were filed against Order-in-Appeal No. KS/301/DAMAN/2006, both being disposed by a common order. Despite no representation from the respondent-assessee, the appeal was taken up for disposal. The issue revolved around whether the respondent-assessee needed to reverse 8% of the total value of exempted goods exported by them. The Department argued that input credit was not eligible for goods manufactured and exported as they carried a Nil rate of duty, a fact not disputed by the assessee.

Upon careful consideration and perusal of records, the Tribunal examined whether the respondent-assessee was required to reverse the 8% amount. It was noted that the goods were exported by filing AR-4/ARE-1 forms and debiting the amount in bond as per the records, which was undisputed by lower authorities. Referring to the law established by the Hon'ble High Court of Mumbai in the case of Repro India, the Tribunal found that the first appellate authority's decision was correct and legally sound, without any flaws.

Consequently, the Tribunal upheld the impugned order, rejecting the Revenue's appeal. The cross objection filed by the assessee in support of the impugned order was also disposed of accordingly. The judgment was pronounced in court, affirming the decision made based on the legal precedents and factual circumstances presented in the case.