Export under claim of rebate and simultaneous claim of “Duty drawback” - Case Analysis

Case Analysis - Decision in the matter of:

M/s MUNOT TEXTILES reported in 2007 -TMI - 1051 - GOVERNMENT OF INDIA

Central Excise 

Manufacturer has exported goods through Merchant Exporter under claim of rebate. In the form ARE-1 (AR-4) Manufacture as well as Merchant Exporter has declared that no-duty drawback would be claimed. But, subsequent to clearance and export, Merchant Exporter has claimed duty drawback.

Department has rejected the claim of Manufacturer for claiming "Rebate" under Rule 18 of Central Excise Rules, 2001 (Central Excise Rules, 2002) read with Notification No. 40/2001 C.E.(NT) dated 26-6-2001.

In this matter, in a revision application made by the Manufacture, Government of India has held that action against Merchant Exporter could have been taken under the Customs & Central Excise Duties Drawback Rules, 1995 but there is no merit in rejecting the rebate claim of the Manufacture.

Therefore, "Rebate" shall be allowed to Manufacturer.