1993 (6) TMI 100 - CGOVT - Central Excise

Summary

Issues:
- Refundability of jute cess paid between 1-5-1984 to 13-5-1984.
- Applicability of Rule 12 and Rule 13 of the Central Excise Rules, 1944 on export of jute goods.
- Interpretation of Cess Act, 1983 in relation to refund of jute cess on exports.

Detailed Analysis:

1. The central issue in this case revolves around the refundability of jute cess paid between 1-5-1984 to 13-5-1984. The Collector of Central Excise (Appeals) allowed refund claims by M/s. Birla Jute and Industries for cess paid on goods exported during this period. However, the Government of India challenged this decision, arguing that the refund was not admissible due to the absence of specific notifications invoking Rule 12 of the Central Excise Rules and Rule 13 not applying to jute cess.

2. The Government contended that the machinery for collection of jute cess had been provided under the Cess Act, 1983, and the Collector (Appeals) erred in holding that cess collected before 15-9-1984 had to be refunded. The correct approach, as per the Government, was to analyze the legal position before 15-9-1984 to determine if any statutory provisions authorized the refund of cess on exports.

3. The Government highlighted the procedural nature of Rule 12 and Rule 13 of the Central Excise Rules, emphasizing that these rules do not automatically entitle exporters to refunds or exemptions. Rule 12 deals with refunding excise duty on exported goods, subject to specific notifications, while Rule 13 allows for the export of goods under bond without immediate duty payment. However, these rules do not grant total immunity from duty payment and must be read in conjunction with each other.

4. The Government's decision was based on the interpretation that neither Rule 12 nor Rule 13 applied to the export of jute goods concerning jute cess unless specifically notified under the Cess Act, 1983. The judgment referenced a Tribunal decision to support this interpretation and concluded that the Collector's orders allowing the refund claims were legally defective.

5. Consequently, the Government set aside the orders-in-appeal passed by the Collector (Appeals) and restored the original orders passed by the Assistant Collector of Central Excise, Calcutta. The review proceedings initiated through show cause notices dated 26-10-1988 were deemed successful, affirming the Government's position on the inadmissibility of the refund claims for jute cess paid between 1-5-1984 to 13-5-1984.