2004 (1) TMI 214 - AT - Central Excise

Summary

Issues:
Refund claims disallowed by Commissioner of Central Excise (Appeals) for export consignments cleared without valid bond, liability for penal action due to removal of goods without duty payment, statutory requirement of valid bond for export, waiver of failure in following procedure under Rule 12 of Central Excise Rules.

Analysis:

1. The appellants had cleared consignments for export under bond without duty payment, but the bond had expired, leading to payment of duty on the consignments. The refund claim for duty paid was presented after completion of export formalities, claiming rebate. The Deputy/Assistant Commissioner found the removal of goods without duty payment rendered the assessee liable for penal action.

2. The Commissioner (Appeals) upheld the impugned order, stating that a valid bond is a statutory requirement for export, and failure to comply renders the export liable for duty payment. Since the appellants failed on this ground, the order disallowing refund claims was upheld.

3. The Tribunal noted that excise duty must be paid on goods removed for export, either under bond or for home consumption. Non-payment of duty at the point of export removal is allowed only under bond. The duty was subsequently paid upon realizing the mistake, pertaining to goods actually exported. The Tribunal found that the goods were cleared on payment of duty for export, and export had taken place, warranting a waiver under Rule 12 of the Central Excise Rules.

4. Consequently, the Tribunal allowed the appeals, setting aside the orders of the lower authorities. The appellants were granted consequential relief to be provided within 3 months from the date of the order.