9911796707
TMI Blog2012 (12) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... terial received from foreign party plus cost of conversion. Under such circumstances, if at all there is any amount which is considered of sole consideration, would be cost of conversion and not anything else. The FOB value declared in Shipping Bills which is equivalent to cost of conversion is the transaction value in this case which is realized toward export sale proceeds - The original authority has rightly held that transaction value in this impugned case is FOB value declared in Shipping Bills and rebate of duty payable on said value is required to be sanctioned. Any excess duty paid is required to be refunded in the manner it was paid - Decided in favour of assessee. - F. Nos. 195/242-250/2011-RA-CX - 1757-1765/2012-CX - Dated:- 18- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amount erroneously paid which is liable to be refunded by allowing credit in their Cenvat credit in terms of Section 11B of the Central Excise Act, 1944. In view of the above the original adjudicating vide impugned Order-in-Original, authority allowed the rebate claims partly in cash and partly through credit it Cenvat account. 3. Being aggrieved by the order-in-original, the applicant filed appeal before Commissioner (Appeals) who rejected the same. 4. Being aggrieved by the impugned order-in-appeal, the applicant has filed these revision applications under Section 35EE of Central Excise Act, 1944 before Central Government on the following grounds : 4.1 It is submitted that the Commissioner (Appeals) ought to have appreciated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Act, 1944 and the same is not in excess. 4.3 It is submitted that the Commissioner (Appeals) erred in not appreciating the fact that having established that the duty paid by the applicants is correct and not in excess the question of application of Government of India Order No. 110/2009, dated 6-5-2009 does not arise. The appellate authority therefore ought to have sanctioned the rebate in cash. 4.4 It is submitted that the Commissioner (Appeals) ought to have appreciated the settled legal position and clarification issued by the Board that the value has to be arrived as per Section 4 of the Central Excise Act, 1944 and the rebate shall have to be allowed equivalent to duty paid. It is further clarified that the rebate has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000, the assessable value for the purpose of determination of duty has to be calculated on the basis of manufacturing charges plus monetary value of free supplies received by the applicant. As such, they are eligible for duty paid on such value declared in impugned AREs-1 and not on FOB value declared on impugned Shipping Bill which indicate only conversion charges of converting duty free material to final export product. 8.1 The provision of Rule 6 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, reads as follows : Rule 6 : Where the excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of Section 4 of the Act except the circumstance where the price is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the price is the sole consideration . But, in the instant case the applicant received free of cost material, processed them and manufactured the final export product exported the same. While exporting the final export material, they declared conversion charges of converting free of cost material into final export product which they were actually going to realize. The applicant was neither going to realize total cost of final export goods nor the total amount declared in AREs-1 which include value of free material received from foreign party plus cost of conversion. Under such circumstances, if at all there is any amount which is considered of sole consideration, would be cost of conversion and not anything else. The FOB value declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Officer and if satisfied that the claim is in order, he shall sanction the rebate either in whole or in part. The provisions contained in said para 3(b)(ii) clearly stipulate that Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise having jurisdiction over factory of manufacture or the Maritime Commissioner of Central Excise if satisfied after scrutinizing the rebate claim that said claim is in order, he shall sanction the rebate either in whole or in part. The sanctioning of rebate claim in whole or in part will depend on admissibility of claim as per laid down parameters. So the provisions of Notification authorizes the Maritime Commissioner of Central Excise to sanction the rebate claim onl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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