2018 (10) TMI 968 - HC - Central Excise

Whether the execution of a bond or letter of undertaking by the noticee is not the pre requisite condition for export without payment of duty? Held that - It remained conceded on behalf of the revenue that against the judgment of Karnataka High Court in the case of Commissioner of Customs Service Tax, Bangalore-II vs. Nash Industries 2017 (3) TMI 1277 - KARNATAKA HIGH COURT , no appeal was preferred by the revenue - As the revenue had accepted number of orders passed by the Tribunal granting relief to the assessees under similar circumstances where export of goods was not affected by the assessee himself but was through the merchant exporter or 100% export oriented unit, we do not find any substantial question of law arise in the present appeal. Appeal dismissed.

Summary

Issues:
1. Whether the execution of a bond or letter of undertaking is necessary for export without payment of duty?
2. Whether the impugned final order is sustainable in the eyes of law?

Analysis:
1. The High Court considered the appeal against the Customs, Excise & Service Tax Appellate Tribunal's order. The Tribunal relied on a judgment of the Karnataka High Court, which the revenue did not challenge. The Karnataka High Court judgment highlighted that the Revenue's challenges to similar cases were dismissed by the Supreme Court. The High Court noted that the issue was settled by the Apex Court and held that no substantial question of law arose. The Tribunal's decision was upheld, stating that deemed exports by a 100% EOU to another 100% EOU qualify as physical exports for refund of unutilized cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004.

2. The High Court mentioned a decision of the High Court of Gujarat, which was dismissed by the Apex Court. The revenue accepted previous orders granting relief to assessees in similar situations involving exports through merchant exporters or 100% export oriented units. As a result, the High Court found no substantial question of law in the present appeal and dismissed the appeal. The judgment emphasized that the execution of a bond or letter of undertaking was not a prerequisite for export without payment of duty in the specific circumstances discussed in the case.

This detailed analysis of the judgment provides insights into the legal reasoning and precedents considered by the High Court in addressing the issues raised in the appeal.