1986 (1) TMI 122 - HC - Central Excise

Summary

Issues:
1. Discrimination between manufacturer-exporters following different procedures under Central Excise Rules.
2. Demand notice issued for excess rebate granted to manufacturer-exporters.
3. Validity of the show-cause notice issued under Rule 10 and subsequent proceedings.

Analysis:
1. The judgment addresses the issue of discrimination between manufacturer-exporters following different procedures under the Central Excise Rules. The petitioners argued that there was discrimination between following Rule 12 and Rule 13 procedures. Rule 12 allows for a rebate of duty paid on exported goods subject to specified conditions, while Rule 13 permits duty-free export under a bond. The petitioners claimed that they were granted full rebate under Rule 12 but were later asked to refund the excess amount. The court noted that the petitioners had a choice of procedure and were aware of the rebate limitations under Rule 12.

2. The judgment discusses the demand notice issued to the petitioners for the excess rebate granted. The Assistant Collector found that the petitioners were not entitled to the full rebate and ordered them to refund a specific amount. Despite the petitioners' appeal and revision application, the demand was upheld. The court considered the arguments presented by both parties regarding the rebate entitlement and the legality of the demand notice.

3. The judgment delves into the validity of the show-cause notice issued under Rule 10 and subsequent proceedings. The petitioners contended that the proceedings initiated under the original Rule 10 had lapsed due to subsequent amendments extending the recovery period. However, the court clarified that the order on the show-cause notice was made when Rule 10 was in effect, thereby rejecting the argument that the proceedings had lapsed. The court restricted the recovery to refunds made within the specified period, ultimately dismissing the petition.

In conclusion, the judgment addresses the issues of discrimination between different procedures under the Central Excise Rules, the demand notice for excess rebate, and the validity of the show-cause notice and subsequent proceedings. The court upheld the decision regarding the rebate entitlement, the legality of the demand notice, and the application of Rule 10 in the case, ultimately dismissing the petition with no costs awarded.