2013 (6) TMI 677 - CGOVT - Central Excise

Denial of rebate claim - non submission of rebate claim before the rebate sanctioning authority Maritime Commissioner, Mumbai, ACCE, Thane as indicated in ARE-1 - Held that - have mentioned in the ARE-1 the address of Maritime Commissioner, Thane as rebate sanctioning authority. Government notes that goods covered vide 5 AREs-1 were exported from JNCH, Nhava Sheva and ACCE Raigarh who is the Maritime Commissioner for export through Seaport Nhava Sheva, is the rebate sanctioning authority in this case. There is a force in the pleading of the respondent that this is a clerical mistake in wrong mentioning of rebate sanctioning authority in 5 AREs-1 and same may be condoned. Government in view of the case laws cited by applicant finds that this procedural lapse is condonable as mentioning of wrong rebate sanctioning authority cannot be a valid ground for denying the substantial benefit of rebate of duty paid on exported goods. - Hence in this case the fundamental condition of claiming rebate stands complied with. The rebate claims in respect of these 5 ARE-I allowed by Commissioner (Appeals) is in order and cannot be faulted with. In one case, the goods were exported from New Custom House, Mumbai and in such case the original authority i.e. Maritime Commissioner, Raigarh Central Excise, who exercises jurisdiction over exports made through JNCH, Nheva Sheva will have no jurisdiction. The respondent was pointed out regarding this discrepancy by the original authority and the respondent ought to have withdrawn his rebate claim and could have filed the same before proper authority, which he failed to do. As such, rebate claim w.r.t. goods exported from NCH, Mumbai has rightly been rejected as beyond jurisdiction by the original authority. Hence, the respondent is not entitled for this particular rebate claim. - Decided partly in favour of assessee.

Summary

Issues:
1. Jurisdiction of rebate claims for exported goods.
2. Compliance with procedural requirements for claiming rebate.
3. Validity of rebate claims based on jurisdictional authority.
4. Application of case laws in determining admissibility of rebate claims.

Analysis:
1. The revision application filed by the Commissioner of Central Excise, Raigad, challenged the Order-in-Appeal regarding the rejection of rebate claims for exported medicaments by Usan Pharmaceuticals Pvt. Ltd. The jurisdictional issue arose as the rebate claims indicated the Maritime Commissioner in Mumbai-III as the authority, while the exports were made from different ports, leading to discrepancies in the claims.

2. The applicant department argued that the procedural requirements for claiming rebate, as per Notification No. 19/2004-C.E. (N.T.), were not fulfilled due to the misrepresentation of the rebate sanctioning authority. The Board's Circular and Trade Notice specified the jurisdiction of the Maritime Commissioner, limiting it to the port of exportation, which was crucial for determining the validity of the claims.

3. Citing case laws such as Hotel Leela Venture Ltd. v. Commissioner of Customs and M/s. Golden Dew Factory v. Commissioner of Central Excise, the government emphasized the strict interpretation of notification conditions. It was noted that non-compliance with specific conditions could not be considered a minor procedural lapse, highlighting the importance of fulfilling all requirements for claiming rebates.

4. Upon reviewing the case records and orders, the government found that while most rebate claims were valid and admissible, the claim related to goods exported from New Customs House, Mumbai, fell outside the jurisdiction of the Maritime Commissioner in Raigarh. As a result, this specific rebate claim was rightly rejected, leading to the modification of the Order-in-Appeal to exclude this particular claim.

5. In conclusion, the government upheld the Order-in-Appeal with the modification regarding the inadmissibility of the rebate claim for goods exported from New Customs House, Mumbai. The revision application was disposed of accordingly, emphasizing the importance of complying with jurisdictional requirements and procedural conditions for claiming rebates on exported goods.