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TMI Blog2013 (8) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... X - Dated:- 5-9-2012 - Shri D.P. Singh, J. This revision application is filed by the applicant M/s. Nemlaxmi Books (India) Pvt. Ltd., Surat against order-in-appeal No. SKSS/145/Surat- 11/2010, dated 24-9-2010 passed by Commissioner (Appeals) of Central Excise, Customs Service Tax, Surat-II with respect to order-in-original No. 43/AC-DK/2009-Rebate, dated 28-2-2009 passed by Assistant Commissioner Central Excise Division - Olpad, Surat-II. 2. Brief facts of the case are that the applicants are engaged in manufacture of stationery items viz. Note Books and Exercise Books and availing credit of duty paid on inputs/input services used in the manufacture of stationery items. The applicant has exported exercise books on payment of excise duty from Cenvat credit account and filed rebate claim for Rs. 1,33,109/-. Their exercise books are fully exempted from duty vide Notification No. 4/2006-C.E., dated 1-3-2006 (Sr. No. 97). Sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2004, provides that the Cenvat credit shall not be allowed on such quantity of inputs or input services which are used in the manufacture of exempted goods. Therefore, the applicant is not eligible to take Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (Appeals), Surat-II both have power to grant the rebate of Rs. 76,684/- i.e. duty paid on inputs, which had been consumed on the manufacture of exported goods. In this case, copy of ARE-1 should be considered as copy of ARE-2 and the worksheet submitted with the rebate claim was the part of ARE-2, to decide the amount of duty consumed in the exercise book. It is also on record that applicant had also having permission for export of exempted goods under Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004 vide F.No. U/18-01/Permission/Rule-18/Nemlaxmi/2005, dated 28-4-2010. 4.4 The payment of duty after availment of Cenvat Credit is Revenue Neutral. So payment of duty Rs. 1,33,109/- by applicant vide Central Excise Invoice No. 01, dated 11-4-2007 had effect that Cenvat credit of Rs. 76,684/- availed on input had been reversed and effect is revenue neutral. In this circumstances, applicant is eligible to claim rebate of duty Rs. 76,684/-, which was paid on the inputs consumed on the finished goods. Commissioner (Appeals) had erroneously held at para 4.4.1 of order-in-appeal that Cenvat credit of Rs. 56,425/- cannot be allowed as re-credit in Cenvat register because it is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reliance on the case of M/s. Banaras Beads Ltd. [2011 (272) E.L.T. 433 (G.O.I.)] in which the lapse on the part of the assessee was a technical lapse and there was no allegation for non-following of procedure under Notification No. 21/2004-C.E. (N.T.). While in the present case, the party has not followed the procedure prescribed under Notification No. 21/2004-C.E. (N.T.) and had claimed rebate of duty after paying the same on exempted goods. Hence, terming of the procedure followed by the party as a technical lapse is clearly an after-thought of the party. 5.4 The applicant had presented ARE-1 before the Range Officer at the time of export. The ARE-1 is a valid document for the export of exempted goods too. The ARE-2 is to be presented only if the exporter intends to take rebate of duty paid on the inputs used in the manufacture of exported goods for which they have to compulsory follow the procedure under Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004. Since the applicant submitted ARE-1 for the export of exempted goods it was to be presumed that they do not intend to take rebate of duty paid on inputs. The Range Officer has signed in token of varying the export goods b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cants have filed the revision application on the grounds as stated at para 4 above. 8. Government notes that there are specific provisions for granting refund/rebate of duty of excise paid on the exported goods as well as the inputs used in the manufacture of export goods under the Central Excise Act, 1944, Central Excise Rules, 2002 and Cenvat Credit Rules, 2004 read with the relevant Notifications issued thereunder. Rule 18 of Central Excise Rules, 2002 provides for rebate of excise duty paid on the export goods as well as the duty paid on materials used in the manufacture of export goods subject to the procedure, limitation and condition specified in the Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 and 21/2004-C.E. (N.T.), dated 6-9-2004. The Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004 has been issued for grant of rebate on the inputs/excisable material used in the manufacture of dutiable/exempted export goods. 9. Government notes that exported goods were unconditionally exempted from whole of duty under Notification No. 4/2006-C.E., dated 1-3-2006, so assessee had no option to pay duty as laid down in sub-section (1A) of Section 5A of Central Excise Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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