2012 (10) TMI 453 - CGOVT - Central Excise

Rejection of Rebate claim alleged that applicant had exported the goods in March 2008, they had debited the duty involved in August 2008 and had thereby, not complied with the provisions of Notification No. 19/04 dated 6-9-2004 issued under Rule 18 of the rules read with condition (i) of part-I, Chapter 8 of the C.B.E.C. Manual of Supplementary Instructions Held that - Provision for claim of rebate is governed by Rule 18, which requires payment of duty at the time of export - provisions contained in Rule 8 does not absolve the assessee from substantial conditions of payment of duty of claim of rebate of duty under Rule 18 of Central Excise Rules, 2002 - rebate of duty is not admissible

Summary

Issues:
Claim for rebate of duty on exported goods not paid at the time of removal.

Analysis:
The case involved a revision application filed by a company against the rejection of their rebate claim for Audio Cassettes (Unrecorded) exported from their factory premises. The company had exported the goods in March 2008 but debited the duty involved in August 2008, which was found to be non-compliant with the relevant provisions. The adjudicating authority rejected the rebate claim, which was upheld by the Commissioner (Appeals).

The applicant contended that they had a sufficient balance of Cenvat Credit in their register and had debited the duty in August 2008 as per the rules. They argued that they were entitled to debit the duty in August 2008 for goods exported in March 2008 under the relevant provisions of Cenvat Credit Rules and Central Excise Rules.

During the hearing, the department argued that the duty was paid in August 2008 instead of at the time of removal in March 2008, thus not complying with the prescribed procedure. The government carefully reviewed the case records and noted that the duty should have been paid at the time of removal for export, as per the provisions of Rule 18 of Central Excise Rules and the related Notification.

The government observed that the applicant failed to pay the duty at the time of export as required by the rules, and therefore, the rebate claim was held inadmissible. The provisions of Rule 8 regarding payment of duty and interest for delays did not absolve the applicant from the essential condition of paying duty at the time of export for claiming a rebate under Rule 18.

In conclusion, the government found no merit in the revision application and upheld the decision of the appellate authority to reject the rebate claim. The applicant's failure to pay duty at the time of export led to the inadmissibility of the rebate claim, as per the provisions of the Central Excise Rules.

Therefore, the revision application was rejected, and the order of the appellate authority was upheld, denying the rebate claim for duty not paid at the time of removal of exported goods.