9911796707
TMI Blog2002 (8) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... te allowed in cash Rs. Rebate rejected Rs. 1. 159/2001 23,84,328/- 97,626/- 11,99,107/- 10,87,595/- 2. 155/2001 8,12,703/- 31,772/- 3,57,189/- 4,23,742/- 3. 156/2001 23,79,191/- 76,301/- - 23,02,890/- 4. 161/2001 19,03,043/- 80,546/- 10,09,366/- 8,13,131/- 5. 162/2001 21,92,277/- 78,349/- 12,96,272/- 8,17,656/- 6. 176/2001 17,86,210/- 60,213/- - 17,25,997/- 7. 177/2001 21,14,564/- 59,858/- 11,58,643/- 8,96,063/- Total 1,35,72,316/- 4,84,665/- 50,20,577/- 80,67,074/- 2.1.Briefly stated the facts of the case are that M/s. Banswara Syntex Ltd. Filed claim for rebate amounting to Rs. 23,84,328/- with regard to polyester-viscose dyed yarn, 100% polyester dyed yarn. Rebate claim amounting to Rs. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon Trade Notice No. 10/91, dated 1-2-1991 of Madurai Collectorate and order of Govt. of India in case of Collector of Central Excise v. Hindustan Alloys Manufacturing Co. [1993 (68) E.L.T. 262 (GOI)] but the appellate authority overlooked these relevant judgments. (iii) That in view of the Ministry's Circular No. 1/91-CX. 3 issued from File No. 93/13/90-CX. 3, dated 4-1-1991 the respondents are duty bound to follow law and notification issued in this regard. (iv) That the respondents have resorted to export their final product under procedures laid down in Rule 12, to encash the unspent amount of Modvat credit, which is available in excess with all the yarn manufacturers. (v) That goods manufactured out of inputs received under the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration for grant of rebate of duty paid on final product. The respondent cited judgment of Steel Rolling Mills of Bengal v. UOI [1992 (62) E.L.T. 41 (S.C.)] in support of their above contention. Extracts of Para 4 of this judgment is reproduced below :- "It may be seen from Rule 12 and Notification No. 197/62 that the rebate is with respect to the duty 'paid on excisable goods' exported and the rebate is to the extent of the duty actually paid at the time of clearance of these goods from the factory. The finished product which was exported is a distinct and separate excisable product from that of the billets (raw materials) used in the manufacture of the same." Therefore, this judgment confirmed the Tribunal decision holding that re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. (v) That the applicant Commissioner in Para 4 of the grounds of the Revision Application has alleged that the respondent has resorted to this scheme with a view to encash the unspent balance of Modvat credit which is available in excess with all the yarn manufacturers. The respondents submitted that in support of contention made in Para 4 of the ground of Revision Application the applicant Commissioner has not quoted any law or rule to substantiate their contention. On the contrary, Board's Circular No. 38/88, dated 8-8-1988 clarifies that the excess Modvat credit accumulated can be utilised towards payment of duty on the final product, if any, manufactured from non-duty paid inputs. Since there was no one to one correlation of inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Customs and Central Excise (Appeals) is just and as per law. They requested to reject the Revision Applications filed by the applicant Commissioner. 8.1.Government has very carefully gone through the written and oral submissions made by the applicant Commissioner and by the respondents along with the cited case laws, trade notice and circulars issued by the Ministry. This is not in dispute that the respondents have manufactured and exported polyester-viscose blended yarns and 100% viscose yarn manufactured from duty paid polyester fibre and viscose fibre procured under CT-2 procedure duty free under the erstwhile Rule 13(1)(b) of the Central Excise Rules, l944. This is also admitted fact that the respondents paid appropriate central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an exemption Notification but it is a facility to the exporters to procure inputs for manufacture of their final products provided they bind themselves to follow the provisions of Chapter X of the Rules, The applicant Commissioner's reliance on Trade Notice No. 10/91, dated 1-2-1991 is issued by the Madurai Collectorate read with Ministry's Circular No. 2/91-C.E. 3 issued from File No. 93/13/90-CX 3, dated 4-1-1991 and the case of Hindustan Alloys Manufacturing Co. [1993 (68) E.L.T. 262 (GOI)] is misplaced as the respondents final products, i.e., goods exported is not exempted from payment of Central Excise duty. 8.2.Notification No. 41/94 C.E. (N.T.), dated 2-9-1994, as corrected, provides rebate of duty on export of all excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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