9911796707
TMI Blog2017 (11) TMI 1781X X X X Extracts X X X X X X X X Extracts X X X X ..... are examined and it is found that these two relevant provisions for this matter do not provide anywhere that if the duty of Central Excise is paid from Cenvat credit for exported goods then rebate of duty is to be granted in Cenvat credit account only. These two provisions talk of granting of rebate of duty only and the same can be possible only in cash and not in form of Cenvat credit as Cenvat credit can be availed and allowed only under Cenvat credit Rules, 2004 and there is no provision for availing or allowing Cenvat credit under Rule 18 of Central Excise Rules, 2002. Even the Central Board of Excise and Customs, an apex body to regulate the working of Central Excise related affairs, has clarified, vide its Circular No. 687/3/2003-Cx, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above revision applications have been filed mainly on the ground that rebate of duty is to be granted in cash only under Rule 18 of Central Excise Rules, 2002 even if the duty is paid on the exported goods from Cenvat credit and it is clarified by the C.B.E. & C. also vide Circular No. 687/3/2003-cx, dated 3-1-2003. It is further contended that rejection of their request by Commissioners (Appeals) for grant of rebate in cash by placing reliance on the Punjab & Haryana High Court decision in the case of Nahar Industrial Enterprises Ltd., [2009 (235) E.L.T. 22 (P & H)] is legally erroneous as the said decision is entirely distinguishable from their case. 3. A Personal hearing in these cases was fixed on 24-10-2017 and the same was at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailing or allowing Cenvat credit under Rule 18 of Central Excise Rules, 2002. Even the Central Board of Excise and Customs, an apex body to regulate the working of Central Excise related affairs, has clarified, vide its Circular No. 687/3/2003-Cx, dated 3-1-2003 issued from File No. 267/57/20020/Cx-8, has categorically clarified that there is no discretion with the sanctioning authority to give the refund of duty paid on the goods exported and duty paid through Cenvat credit must be refunded in cash only. Even earlier the C.B.E. & C. had clarified vide its Circular No. 153/64/95-Cx, dated 12-10-1995, 262/96/96-Cx, dated 6-11-1996, 407/40/98-Cx, dated 15-7-1988 and 408/41/98-Cx, dated 20-7-1998 that the rebate of duty paid through MODVAT cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admissible in cash under Rule 18 read with Notification No. 19/2004-C.E. as clarified by the C.B.E. & C vide its above referred circular, dated 3-1-2003. Considering the above facts, the above cited decision of Punjab & Haryana High Court is not applicable to the present cases of the applicant and the Government is of the clear view that Commissioners (Appeals) have committed an error by denying the rebate of duty to the applicant in cash on the basis of above decision in the case of M/s. Nahar Industrial Enterprises Ltd. 6. In view of the above discussions, the applicant is held to be eligible for rebate of duty through cheques in these cases along with interest in accordance with Section 11BB of the Central Excise Act, 1944 as per w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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