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TMI Blog2016 (6) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... notes that the applicant has contended that they have made inward remittance in the instant case in Indian Rupees through Vostro Account through Vostro Account with Deutche Bank. On perusal of copies of some documents, Government finds that an amount of INR has been shown in the Bank statement of M/S. Standard Chartered Bank. Applicant has given his submission before Commissioner (Appeals). However, there is no findings of Commissioner (Appeals) on this point while drawing the conclusion that applicant did not comply with provision contained in para 2-40 of the FTP. - Matter remanded back. - F.No.195/1575/2012-RA - ORDER NO E 13/2016-CX- - Dated:- 25-1-2016 - SMT, RIMJHIM PRASAD, JOINT SECRETARY ORDER : This revision applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent is legally untenable in as much as there is no provision in the Central Excise Rules, 2002 or notification issued under said rules or Central Excise Act, 1944 that the rebate would be allowed only if the export proceeds are realized in convertible foreign exchange. It is submitted that the Commissioner (Appeals) has erred in rejecting the appeal solely on the basis that the applicants have not produced any evidence of fulfilling the conditions specified in Foreign Trade Policy 2009-14 (FTP) and has erroneously interpreted the provisions of FTP stating that the rupee payment should be through Vostro account of the applicant. Further, it is submitted that both the original authority as well as Commissioner (Appeals) have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment has issued notification No. 19/2004-C.E(N.T,), dated 06.09.2004. The applicant submits that even under the above said notification there is no condition prescribed that the benefit of rebate on export of goods under Rule 18 would be allowed only if the export proceeds are realized in convertible foreign exchange. 4.3 The applicant submits that even Central Excise Manual issued by CBEC for the reference of Central Excise department, does not specify that export realization is a precondition for granting of rebate. The applicant submits even though the CBEC's Manual is not law or rules framed there under, reference could be drawn there from for the purpose of the understanding procedural aspects of the Central Excise law. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n foreign exchange into the country. The foreign customer of the Applicant has instructed their bank to remit the export proceeds in INR and based on such instructions, their banker has transferred the INR held in Vostro Account to the banker of the Applicant. This clearly establishes that there is a receipt of foreign exchange into India and therefore, there is no contravention as to realization of exports proceeds 4.6 The applicant submits that the order of the respondent is erroneous and legally untenable in as much as there is no condition that rebate of duty on exports would be allowed only if the export proceeds are realized in convertible foreign exchange. The Applicant submits that the Foreign Exchange Management ACT, 1999 (FEMA) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized only in convertible foreign exchange. 5. Hearing in this case was fixed on 01.06.2015, 22.06.2015 and 07.07.2015, nobody attended hearing on behalf of either parties but vide letter dated 27.05.2015 the applicant informed that the proceedings be concluded based on pleadings, information and documentary available in revision application. The department also vide letter dated 03.06.2015 informed that case be decided based on findings in the Order-in-Original/Order-in-Appeal. 6. Government has gone through the relevant case records/available in case files, oral written submission and perused the impugned Order-in-Original and Order-in-Appeal. 7. Government observes that part rebate claim of the applicant was rejected on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t promotion schemes of FTP. Contracts [ for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar, Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank/ Government of India line of Credit. ' 8.2 From above perusal of said FTP, it is implied that export proceeds may be realized in rupees, provided it is through a freely convertible vostro account of a non-resident bank situated in any country other than a member country of A(I) or Nepal or Bhutan. This is subject to condition that rupees payment through vostro account must be against payment in free foreign currency by a buy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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