2006 (2) TMI 689 - HC - Central Excise

Summary

Issues:
Challenge to order rejecting duty rebate on exported goods.

Analysis:
The petitioners challenged an order rejecting duty rebate on goods exported. The dispute arose from the refusal of the respondents to grant duty rebate on chassis manufactured and cleared by the petitioners for body building. The petitioners paid central excise duty on the chassis, and after body building, the motor vehicles were cleared and exported. The competent authority rejected the rebate claim stating that the exported goods were motor vehicles, not chassis, as the identity of the chassis was lost after body building. The petitioners' appeal and subsequent application were also dismissed. Both parties agreed that chassis numbers from shipping bills could establish the connection to the duty-paid chassis.

The Court referred to Rule 12 of the Central Excise Rules, 1944, which allows rebate of duty on exported goods subject to specified conditions. The Rule empowers the Collector to grant rebate if satisfied that the goods have been exported, even if all conditions are not met. The Court set aside the orders and directed the Commissioner of Customs to verify from records the duty paid chassis manufactured by the petitioners and exported as motor vehicles. The Court allowed the petition, making the rule absolute without costs.