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2020 (2) TMI 626 - HC - Central ExciseRebate claim - claim rejected on the ground that the description of the export goods in the export invoices were invariance within the description in Form ARE-1's - Maintainability of application - Section 35 EE of the Central Excise Act, 1944 - HELD THAT:- Goods imported under Advance Authorisation Schemes are exempted are from payment of customs duty, additional customs duty, education cess, anti-dumping duty and safeguard duty et cetera. An importer has to 1st discharge export obligation undertaken under the Advance Authorisation by exporting finished goods out of the country. Had the petitioner used only duty paid goods in the manufacture of export goods the petitioner would have been entailed rebate under Rule 18 of the Central Excise Rules, 2002. In the present case, however the petitioner has utilized not only goods/inputs imported under the Advance Authorisation Scheme but also goods/inputs procured on payment of excise duty/additional duty of customs equivalent to central excise duty on which it availed CENVAT Credit to manufacture goods exported - There is no discussion in the impugned orders of the 1st, 2ndrespondent and the 3rd respondent as to under which customs notification the goods were imported by the petitioner under the Advance Authorisation Scheme. The petitioner has used goods/inputs procured on payment of Central Excise duty and Additional Duty of Customs equivalent to Central Excise Duty along with goods imported under the Advance Authorisation Scheme to manufacture of export goods to claim rebate under Rule 18 of the Central Excise Rules, 2002 on the finished goods exported from the Coimbatore unit of the petitioner - Normally, only after export obligation undertaken/specified in the Advance Authorisation is discharged, a manufacturer would be entitled to either sell the manufactured goods in the domestic tariff area i.e in the domestic market on payment of excise duty or export them and claim rebate of excise duty paid on such goods under Rule 18 of the Central Excise Rules, 2002. To allow rebate claim to the petitioner without the petitioner discharging the obligation undertaken under the relevant customs notification read with Foreign Trade Policy under which the inputs were imported may result in unintended incentives being granted to the petitioner without proper examination - Appeal allowed by way of remand.
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