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2017 (1) TMI 589 - AT - Central ExciseRebate claim - Rule 18 of Central Excise Rules, 2002 - export of goods - Held that: - rule 5 of CENVAT Credit Rules, 2002 applies to inputs used in final products cleared for export and that rule 18 of Central Excise Rules, 2002 accords rebate of duties paid on goods that are exported. The rebate under this rule is allowable as long as goods are excisable or duty has been paid on materials used in processing of such goods. We find no reason to surmise that these rules distinguish between exempted goods and dutiable goods. They refer to final products and to excisable goods respectively. It is the stated doctrine in tax administration that domestic taxes are not exported with goods. Legislation carves out special provisions in taxing statutes for ensuring that such anathema is eliminated. The failure on the part of the lower authorities to perceive the intent of provision of rule 18 of Central Excise Rules, 2002, by digressing to the issue of payment of duty without the legal compulsion to do, appears to have blindsided them into suspicion of the motives for payment of such duty to the exclusion of the larger issue, viz, burdening the export value with domestic taxes. Appeal allowed - decided in favor of appellant.
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