2005 (3) TMI 362 - AT - Central Excise

Summary

Issues involved: Appeal against Order-in-Appeal passed by the Commissioner (Appeals) regarding rebate claim under Rule 18 of the Central Excise Rules for duty paid on exported S.S. Utensils.

Summary:
The Appellate Tribunal CESTAT, New Delhi heard the appeal filed by the Revenue against the Order-in-Appeal passed by the Commissioner (Appeals). The case involved the respondent, engaged in the manufacture of S.S. Utensils, who filed a rebate claim under Rule 18 of the Central Excise Rules for duty paid on exported goods. The adjudicating authority allowed the rebate claim, which was then appealed by the Revenue and dismissed by the Commissioner (Appeals).

The Revenue contended that S.S. Utensils were exempted from duty under Notification No. 10/2003, dated 1-3-2003, and therefore, the amount deposited should not be considered as payment of Central Excise Duty but as a deposit with the Government, making the respondent ineligible for any rebate.

The Tribunal noted that the respondents were indeed paying duty and the revenue was accepting it as Central Excise Duty. It was established that the option to avail the benefit of exemption notification or pay duty at the time of clearance of goods lies with the assessee. Citing precedents such as Reliance Industries Ltd. v. CCE and Mafatlal Industries Ltd. v. CCE, the Tribunal affirmed that since the goods were cleared on payment of duty, the rebate claim for exported goods was valid. Consequently, the appeal was dismissed.