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TMI Blog2025 (3) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on which excisable goods were removed without payment of duty under Excise Rule 19 under two ARE-1 forms. The conditions subject to which goods can be removed for export without payment of duty under this rule were prescribed by the Board. The basic requirement in this procedure is that there is evidence of the goods, which were removed from the factory must be exported. The ARE-1 issued by the Range Superintendent must be matched with the corresponding shipping bills under which they were exported. Excise Rule 19 does not provide that one could clear the goods and sell them to anybody in the domestic market who in turn may sell them to somebody else who may export goods or use them to manufacture some goods which may finally be exporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s exempted on such goods under a variety of schemes. Each scheme has its own safeguards and procedures which must be followed. Among them are Excise Rule 18 which provides for rebate of duty paid if the goods are exported and Excise Rule 19 provides for export without payment of duty which reads as follows :- "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 processing of goods whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut payment of duty. After examining the documents submitted by the appellant in response, it was found that the appellant had not exported the goods. Instead, the appellant had sold them to M/s Central Electronics Ltd. [CEL], Sahibabad. 7. The case of the appellant is that one, M/s Angelique International Ltd. [AIL], New Delhi had received an order from Mozambique for supply of solar power generating systems. Angelique sublet the order to CEL who had further sublet the order to the appellant. Thereafter, the appellant had procured the batteries from HBL which were directly delivered to CEL and they were further used in manufacture of the Solar Power Generating Systems and exported. The appellant submitted the following documents to the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernational Ltd., 104-107, Hemkunt Tower, 98 Nehru Place, New Delhi. 8. Undisputedly, the appellant had not submitted the original and duplicate copies of ARE-1 issued by HBL along with copies of Shipping Bill and Bill of Lading as required. Therefore, it appeared that the appellant had contravened the provisions of Notification No. 42/2001-CE, as amended, read with Excise Rule 19 with an intent to evade payment of central excise duty. Therefore, a show cause notice dated 25.05.2016 was issued to the appellant which was decided by the Joint Commissioner confirming the demand of Rs. 10,81,241/- under Section 11A along with interest under Section 11AA of the Excise Act. He also imposed penalties under Section 11AC of the Excise Act and under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Department that the goods obtained without payment of duty by the appellants have not been exported falls to ground. (f) The perusal of Notification No. 42/2001-CE (NT) dated 26.06.2001 clarifies that the said notification deals with procedure for removal of goods without payment of duty under the said notification. In para 1 of the notification a mandatory provisions has been provided that the goods shall be exported within six months from the date of clearance of the said goods of export. This mandatory provision has been complied with by the appellants as the goods have been exported within a period of six months from the date of clearance of the said goods for export. (g) Mere absence of the name of the appellants in the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. 3. It is therefore, prayed that this appeal be allowed with consequential relief and impugned order be pleased set aside". Submissions on behalf of the Revenue :- 10. Learned authorized representative for the Revenue supported the impugned order and asserted that it calls for no interference. 11. We have gone through the records of the case and considered the submissions advanced by both sides. 12. The undisputed facts of the case are that the appellant had obtained CT-1 Certificates from the Jurisdictional Authorities at Jaipur after executing a bond based on which excisable goods were removed without payment of duty under Excise Rule 19 under two ARE-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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