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2015 (1) TMI 527 - HC - Central ExciseClaim of rebate on export of goods while availing the benefit of area based exemption (Kutch area) Notification No.39/2001CE( NT) dated 31.07.2001 - Rule 18 of the Central Excise Rules, 2002 - Held that:- for availing the exemption benefit under Notification No.39/2001, the industrial unit ought to have been set up on or before the cutoff date i.e. 31.12.2005 and the exemption shall be applied for a period not exceeding 5 years from the date of commencement of commercial production by such unit. - petitioners established their units in the Kutch area and installed the plant and machinery prior to 31.12.2005 (cutoff date) and also started manufacturing the goods and exported the goods after availing the benefit of exemption Notification No.39/2001CE. However, the petitioners installed additional machineries after 31.12.2005 and claimed the rebate with respect to the export of goods which are manufactured on the additional machinery installed after 31.12.2005 by submitting that with respect to the exports of such goods which are manufactured on the additional machinery installed after 31.12.2005, they will not claim the benefit under the exemption Notification No.39/2001CE and they will claim the rebate of the duty on export of goods. The aforesaid is rightly rejected by the Revisional Authority. The petitioners cannot be permitted to claim the rebate under Rule 18 of the Rules on the exported goods manufactured on additional machinery installed after 31.12.2005, may be on maintaining the separate accounts. Under the circumstances, as such the Revisional Authority has rightly denied the rebate to the petitioners on the exported goods on additional machinery installed after 31.12.2005, relying upon clause 2(h) of the notification under Rule 18 of the Rules. - admittedly, there is no new product by installing fresh plant, machinery or capital goods after the cutoff date i.e. 31.12.2005. The same product is manufactured / continued to be manufactured however, some additional machineries have been installed. Under the circumstances, the petitioners shall not be entitled to the benefit of exemption under Notification No.39/2001CE. The further distinction is sought to be canvassed by the petitioners i.e. the goods manufactured on the machinery installed prior to 31.12.2005 and the same product manufactured on the additional machinery installed after 31.12.2005, for the purpose of claiming the exemption under Notification No.39/2001CE is not permissible. Once the petitioners’ unit started and availed the benefit of exemption under Notification No.39/2001CE, considering clause 2(h) of the notification issued under Rule 18 of the Rules, the petitioners shall not be entitled to rebate of the duty on export of the goods manufactured. Under the circumstances, the petitioners are rightly denied the rebate. The impugned order passed by the Revisional Authority does not suffer from any illegality. - Decided against Assessee.
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