1994 (6) TMI 24 - CGOVT - Central Excise

Summary

Issues:
- Claim of refund of Central Excise duty credit under Rule 57A
- Interpretation of rebate and refund in the context of Central Excises and Salt Act
- Applicability of Section 35EE and proviso to Section 35B(1) in the case

Analysis:
1. The case involves a revision application against an order-in-appeal related to two claims of refund amounting to Rs. 17,77,901/- for Central Excise duty credit under Rule 57A. The claims were based on inputs used in the manufacture of goods exported under bond as per Notification No. 85/87-C.E., issued under Rule 57F of Central Excise Rules, 1944 (MODVAT Rules).

2. The advocate representing the applicants argued that the grant of rebate arises from specific sections of the Central Excises and Salt Act and that Rule 12A has been framed for grant of rebate of duty on excisable goods used in the manufacture of exported goods. The advocate contended that the refund under Rule 57F is essentially a rebate under the Act.

3. The government disagreed with the advocate's interpretation, stating that rebate and refund are not synonymous. The government cited Order-in-Revision No. 4/94, which highlighted that the power of revision is limited to cases specified in the proviso to Section 35B(1) of the Act. The order emphasized that rebate on exports presupposes duty leviability on clearance of goods and that various notifications empower the government to grant rebate subject to specific conditions.

4. The government further explained that Notification No. 85/87 under Rule 57F does not envisage rebate of duty paid but rather refund of credit of specified duty. Therefore, the government concluded that the case is not maintainable under Section 35EE read with the proviso to Section 35B(1) of the Central Excises and Salt Act, leading to the dismissal of the revision application.

5. Ultimately, the government rejected the application as non-maintainable, based on the interpretation of rebate and refund in the context of the Act and the specific provisions governing the grant of rebate or refund in cases of exported goods.