9911796707
TMI Blog2012 (5) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... tories Ltd., Village Bhagwanpura, Barwala Road, Derabassi, who are the Respondents herein. 2. Brief facts of the case are that the respondents are engaged in the manufacture of Pharmaceutical products. They cleared 93.000 kgs. of Clopidogrel Hydrogen Sulphate to M/s. Indoco Remedies Ltd., Goa vide Invoice No. 682 dated 31-3-2006 on payment of duty amounting to Rs. 16,24,432/-. However, out of the said goods, 92.748 kgs goods were received back on 22-6-2006. The respondent entered the returned goods in RG-1 register and took the cenvat credit of duty in terms of Rule 16(1) of the Central Excise Rules, 2002. Subsequently, the respondent exported 36.300 kgs of the aforesaid goods to Slovnia against claim for rebate under Rule 18 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods are exported. 3.2 The purpose of sanctioning rebate of duty under Rule 18 of the Rules, the duty of which rebate can be sanctioned has to be a "duty" of excise which has been paid at the rates set forth in the First Schedule to the Tariff Act. In the instant case, the party has paid the amount under Rule 16(2) of the Rules equivalent to the Cenvat Credit taken against the goods under Rule 16(1) of the Rules and not as duty on the transaction value of the said goods at the time of clearance for export and at the rates set forth in the First Schedule to the Tariff Act. From ARE-1 No. 233/2006-07 dated 22-7-2006 and invoice No. E-233 dated 22-7-2006 vide which the goods were cleared for export, it is seen that while the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the aforesaid sub-rule is to be treated as if it was a duty paid by the manufacturer. 4.5 Rule 16 of the Central Excise Rules merely provides for the procedure to deal with the returned goods. Hence, the amount paid on the clearance of the impugned export goods is, in fact, duty paid and the rebate of the same is legally permissible to the Respondent. 4.6 The provisions of Rule 16(2) of the Central Excise Rules is analogous to Rule 3(6) of the Cenvat Credit Rules. The sub-rule provides that the amount paid on the clearance of inputs 'as such' under Rule 3(5) of the Cenvat Credit Rules shall be eligible as Cenvat Credit as if it was a duty paid by the person who removed such goods. 4.7 The Central Board of Excise and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent paid the duty by debiting their cenvat account under Rule 16(2) of the Central Excise Rules, 2002. As per Rule 16(2) of Central Excise Rules, 2002 if the process to which the goods are subjected before being removed does not amount to manufacture, the manufacture shall pay an amount equal to CENVAT Credit taken under sub rule (1) and in other case the manufacturer shall pay duty on goods received under sub-rule (1) at the applicable rate. Thus provision of Rule 16(2) though makes distinctions between word "Amount" and "Duty". If the processing of goods does not amount to manufacture, the cenvat credit taken under sub-rule (1) shall be considered as "amount" and in such cases the cenvat credit taken under sub-rule (2) shall be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
