2016 (3) TMI 578 - HC - Central Excise

Writ petition - Claim of refund / rebate simultaneously while claiming benefit of duty drawback - Export of Textile products - Entitlement to claim rebate under Notification No. 19/2014-CE (NT), dated 06.09.2004 - Held that - as per decision in the case of M/s Raghav Industries Ltd. Versus Union of India and Others 2016 (3) TMI 550 - MADRAS HIGH COURT , it is clear that the benefits claimed by the petitioner are covered under three different statutes under the Customs, Central Excise Duties and Service Tax Drawback Rules. When the petitioner had availed the duty drawbacks on Customs, Central Excise and Service Tax on the exported goods, they are not entitled for rebate under the Central Excise rules by way of cash payment as it would result in double benefit. Therefore, as per the proviso to Rule 3 of the Central Excise Duties and Service Tax Drawback Rules, 1995, the petitioner is not entitled to claim both the rebates. - Decided against the petitioner

Summary

Issues:
Claim for rebate under Notification No.19/2004-CE (NT) dated 06.09.2004, entitlement to rebate under Central Excise rules, availing duty drawbacks on Customs, Central Excise, and Service Tax on exported goods, potential double benefit from cash payment rebate.

Analysis:
The petitioner, a manufacturer and exporter of Textile products, transitioned from a 100% EOU Unit to a DTA unit and exported goods utilizing capital goods credit and input service credit. The petitioner claimed a higher rate of drawback on the exported goods and subsequently applied for rebate under Notification No.19/2004-CE (NT) dated 06.09.2004. The respondents contended that granting rebate would result in double benefit as the petitioner had already claimed a higher rate of drawback on the exported goods. The respondents also highlighted that the duty paid on the exported goods was not refunded in cash but re-credited to the cenvat credit account to avoid a double benefit scenario.

The court observed that the petitioner failed to pay back the drawback portion availed before claiming the rebate, as required. The respondents argued that the issue in the present Writ Petition was previously addressed in a decision of the court, where it was clarified that benefits claimed under different statutes, including Customs, Central Excise Duties, and Service Tax Drawback Rules, cannot be availed simultaneously. The court emphasized that as per the proviso to Rule 3 of the Central Excise Duties and Service Tax Drawback Rules 1995, the petitioner is not entitled to claim both rebates.

Based on the precedents and legal provisions cited, the court concluded that the petitioner, having availed duty drawbacks on Customs, Central Excise, and Service Tax on the exported goods, is not entitled to a rebate under the Central Excise rules through cash payment, as it would lead to a double benefit situation. Consequently, the court dismissed the Writ Petition, deeming it devoid of merits. No costs were awarded in this judgment.