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2013 (7) TMI 76 - CGOVT - Central ExciseExport of Pan Masala - Claim of higher benefit - Rebate under Notification 32/2008-C.E. (N.T.), dated 28-8-2008 or Notification No. 19/2004-C.E. for Export under Rule 18 of the Central Excise Rules, 2002 read with Rule 14 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rule, 2008 under self-assessment procedure/self-sealing and self-certification. - Held that - as per Rule 14 of Pan Masala Packing Machines (Capacity Determination & Collection of Duty) Rules, 2008, no rebate of excise duty paid on pan masala shall be granted under Rule 18 of Central Excise Rules, 2002 except in accordance with the terms and conditions as Government may specify in the notification. Further, Government issued Notification No. 32/2008-C.E. (N.T.), dated 28-8-2008 for granting rebate of duty paid on exported pan masala. This notification is issued under Rule 18 of Central Excise Rules, 2002 read with Rule 14 of Pan Masala (Capacity Determination & Collection of Duty) Rules, 2008 providing for rebate of duty paid on exported pan masala. The provisions of Rule 14 ibid clearly stipulate that in the instant case rebate of duty has to be granted under Notification No. 32/2008-C.E. (N.T.) and not under Notification No. 19/2004-C.E. (N.T.). The provision of Notification No. 19/2004-C.E. (N.T.) cannot be made applicable to pan masala in respect of which rebate is not admissible except under the provisions of Notification No. 32/2008-C.E. (N.T.). So there is no question of applicability of two notifications in the instant case. Since, in this case only the provisions of one Notification No. 32/2008-C.E. (N.T.) are attracted, the case laws cited by the applicant for the proposition that benefit of notification granting more benefit has to be given, are of no help to the applicant. Government, therefore holds that lower authorities have rightly sanctioned the rebate claim in accordance with the provisions of Notification No. 32/2008-C.E. (N.T.), dated 28-8-2008. - Decided against the assessee.
Issues Involved:
1. Rebate claims for excise duty on exported goods. 2. Application of Notification No. 32/2008-C.E. (N.T.) versus Notification No. 19/2004-C.E. (N.T.). 3. Calculation method for rebate claims. 4. Correction of arithmetical errors in rebate calculations. Detailed Analysis: Rebate Claims for Excise Duty on Exported Goods: The applicants, M/s. Dhariwal Industries Ltd., filed revision applications against the orders of the Commissioner (Appeals), which upheld the original orders of the Assistant Commissioner of Central Excise & Customs. The applicants had cleared excisable goods for export under Rule 18 of the Central Excise Rules, 2002, and filed rebate claims as per Notification No. 32/2008-C.E. (N.T.). However, the rebate sanctioning authority sanctioned lower amounts based on a specific formula, rejecting a total of Rs. 14,022,904. Application of Notification No. 32/2008-C.E. (N.T.) Versus Notification No. 19/2004-C.E. (N.T.): The applicants argued that Notification No. 19/2004-C.E. (N.T.) should apply, allowing for a full rebate of duty paid on exported goods. They contended that the notification had not been amended to restrict its applicability, and thus, they were eligible for the rebate. However, the Government observed that as per Rule 14 of the Pan Masala Packing Machines (Capacity Determination & Collection of Duty) Rules, 2008, no rebate shall be granted under Rule 18 except as specified in Notification No. 32/2008-C.E. (N.T.). Therefore, the rebate must be calculated according to the latter notification, and Notification No. 19/2004-C.E. (N.T.) is not applicable. Calculation Method for Rebate Claims: The rebate claims were calculated using two formulas specified in Notification No. 32/2008-C.E. (N.T.): - Formula 1: Monthly average rate of rebate per pouch, calculated by dividing the total duty paid for a month by the total quantity of pouches manufactured. - Formula 2: Maximum amount of rebate per pouch, calculated by dividing the duty payable per machine per month by the total number of pouches deemed to be produced per machine. The Government upheld the lower authorities' decision to use these formulas, rejecting the applicants' claims for a higher rebate amount. Correction of Arithmetical Errors in Rebate Calculations: The applicants contended that the rate of Rs. 2.18 per pouch was incorrectly calculated and should be Rs. 2.19. The Government found merit in this argument, directing the original authority to recalculate and sanction the rebate claims based on the corrected rate of Rs. 2.19 per pouch. Conclusion: The Government upheld the orders-in-original and orders-in-appeal, confirming that the rebate claims were correctly sanctioned as per Notification No. 32/2008-C.E. (N.T.). However, it directed a minor modification to correct the arithmetical error in the rebate rate calculation. The revision applications were disposed of accordingly.
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