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TMI Blog2014 (9) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise dated 26-2-2010. 3. The petitioner (hereinafter referred to as the 'assessee') manufactures and exports desk diaries through merchant exporter against form C.T.-I without payment of duty. It claimed refund of duty paid on excisable inputs used in the manufacture of the final product and other diaries. The rebate was granted in terms of the interpretation accepted by the concerned authorities of the DEPB Scheme which in turn relied upon the scheme itself launched on 1-4-1997. The authorities accepted the assessee's stand. This view which culminated in the opinion and order of the Commissioner of appeals was challenged in the revisional proceedings by the Central Government. 4. Before the revisional authority it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omply with the relevant statutory provisions. There are different notification issued under both Rules 18/19 ibid prescribing the conditions and procedure to be followed for availing the said scheme. In this case applicant has exported goods under Rule 19 ibid which does not allow any benefit of rebate claim. In case said rebate claim is allowed, it would amount to amalgamation of two different schemes provided under different rules, which is not permissible under the rules. While working under Rule 19, applicant is entitled to procure duty fee materials under sub-rule (2) of said rule. Applicant did not prefer to avail said facility. 9.3 Government is of considered opinion that is the instant case goods were exported under the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n scheme that envisages grant of DEPB CREDIT ENTITLEMENT to an exporter at the time of export at an ad valorem rate notified by DGFT, in relation to FOB value of the export product. The DGFT have so far notified DEPB rates for nearly 2700 export products, which are based on the computation of basic customs duty suffered by the exporters on the inputs listed in the SION applicable to the export product. The crucial feature of the DEPB scheme is that all the inputs listed in the SION are deemed to have been imported and to have suffered Customs duties. DEPB rates are finalised by the DEPB Committee, chaired by Additional DGFT and including representative from Ministry of Finance. The DEPB scheme is operationalised vide Notification No. 97/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfilment of such procedure, as may be specified in the notification. Explanation. - 'Export' includes goods shipped as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft. Rule 19. Export without payment of duty. - (1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the Commissioner. (2) Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them internationally competitive and, therefore, intention of the Legislature was to grant some concession on duty paid on excisable goods or inputs and in order to achieve this objective, Rule 18 was evolved whereby rebate of duty paid either on excisable goods, which are exported, or on inputs is provided. The intention of the Legislature was not to grant rebate of duty paid on exported goods as well as on inputs used in such goods simultaneously, which is evident from the language used in Rule 18 of the 2002 Rules. If the intention of the Legislature was to grant rebate of duty paid on excisable goods as well as on material used in the manufacture or processing of such goods, in that event, there was no propriety to ask the assessee fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vident that these two separate and distinct notifications issued by the Central Government are consistent with the scheme of Rule 18 of the 2002 Rules to grant rebate of duly only on one item. However, the option is with the assessee. In other words, if the assessee is entitled to get rebate of duty paid on both the items, there was no necessity for the Central Government to issue two separate notifications requiring assessee to claim rebate separately on the duty paid on excisable goods and on inputs." 10. This Court concurs with the view taken by the Bombay High Court that the benefit intended to be conferred upon the exporters was irrespective of the source from which they obtain the inputs i.e. imported products or locally manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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