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2011 (9) TMI 901 - CGOVT - Central ExciseDenial of rebate claim - Export of goods without payment of duty - original authority initially sanctioned rebate claims filed by the respondent - Failure to submit copy of BRC (Bank Realization Certificate) w.r.t. exports in question within 160 days from the date of sanction of rebate in terms of Board’s Circular No. 354/70/97-CX., dated 13-11-1997 - original authority confirmed the demand of already sanctioned rebate - appellate authority decided the case in the favour of respondent - Held that:- foreign buyer went into liquidation and hence could not repatriate foreign exchange to the respondent. However, the respondents were insured for their exported goods by Export Credit Guarantee Corporation (ECGC) who settled their claim in Indian Rupees - RBI Master Circular No. 9/2008-09 dated 1-7-2008 provides that the claims settled by ECGC and Private Insurance Companies regulated by IRDA should not be construed as export realization in foreign exchange. Exports are entitled for rebate benefit only if the export realization is received in foreign currency. Such settlement cannot be taken as actual realization of the impugned export sale proceeds for the purpose of grant of rebate. As such, action for recovery of sanctioned rebate is legal and proper, for non-compliance of provisions contained in Board’s Circular No. 354/70/97-CX., dated 13-11-1997. Decided in favour of Revenue.
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