2019 (6) TMI 948 - HC - Central Excise

CENVAT credit - inputs - export of goods - rebate claimed - HELD THAT - We admit the appeal on the ground that there is substantial point of law involved. Nonetheless considering the fact that some factual issues are also involved, we think it fit to remand the matter back to the Learned Tribunal after setting aside the impugned order dated 20th March, 2018 with a request to the Learned Tribunal to re-hear and re-determine the matter afresh within three months of communication of this order. Appeal disposed off.

Summary

Issues:
1. Interpretation of Section 2(k) of the Cenvat Credit Rules, 2004.
2. Entitlement to double benefit upon export and rebate claim.
3. Adequacy of reasons in the Tribunal's order.
4. Review of factual findings and legal points by the High Court.

Interpretation of Section 2(k) of the Cenvat Credit Rules, 2004:
The High Court scrutinized the Tribunal's decision regarding the appellant's export of gift boxes containing items from both open market and self-manufactured goods. The Court raised questions about the denial of the appellant's claim based on Section 2(k) of the Cenvat Credit Rules, 2004, emphasizing the lack of clarity on the rebate claimed and the double benefit sought by the appellant. The Court found the Tribunal's reasoning insufficient and decided to admit the appeal due to substantial legal issues involved.

Entitlement to double benefit upon export and rebate claim:
The High Court highlighted the confusion surrounding the appellant's entitlement to double benefits upon export and rebate claim. The Court noted the Tribunal's failure to provide adequate reasons for denying the appellant's claim, especially regarding the specific provisions of Section 2(k) of the Cenvat Credit Rules, 2004. The Court decided to remand the matter back to the Tribunal for a re-hearing and fresh determination within three months, acknowledging the presence of factual issues alongside legal considerations.

Adequacy of reasons in the Tribunal's order:
The High Court expressed dissatisfaction with the Tribunal's order, citing a lack of detailed reasoning to support the denial of the appellant's claim. The Court questioned the basis for dismissing the appeal in light of the ambiguous interpretation of Section 2(k) of the Cenvat Credit Rules, 2004. By setting aside the Tribunal's decision, the High Court aimed to ensure a more thorough review of the factual and legal aspects of the case.

Review of factual findings and legal points by the High Court:
In reviewing the case, the High Court focused on the factual scenario where the appellant exported gift boxes containing a mix of self-manufactured items and those obtained from the open market. The Court emphasized the need for a clear understanding of the appellant's claim for rebate and potential double benefits under the relevant legal provisions. By disposing of the appeal and stay application, the High Court directed a re-examination by the Tribunal to address the unresolved issues and provide a well-founded decision based on both law and facts.