Refund claim is allowed even if the claim is not filed on letter head and further, the question of foreign exchange realization does not arise in case of export of goods as free replacement of defective goods

Commissioner of Central Excise, Raipur Vs. Simplex Engineering & Foundary Works P. Ltd. [2015 (11) TMI 662 - CESTAT NEW DELHI]

Simplex Engineering & Foundary Works P. Ltd. (“the Respondent”) paid duty on the final products which were ultimately exported as replacement of the earlier defective goods. Thereafter, the Respondent filed a refund claim of the duty paid on the exported goods. The Department denied refund claim on the following grounds:

• The intention of refund claim was not indicated in the invoice;

• The request of the claim of refund is not on the letter head of the Respondent; and

• The Respondent has not received any foreign exchange for supply of the exported goods.

The Hon’ble CESTAT, New Delhi has upheld the decision of the Commissioner (Appeals) that in a catena of decisions, the view has been expressed that when export of goods and payment of duty on exported goods is not in question, minor deviations from the fulfillment of the procedural requirements should not be taken into considerations for deciding the fate of a claim. In this case, intention of the Respondent has been clearly shown from the filing of the refund claim. Further, there is no prescribed rule/procedure that refund claim is required to be filed only on letter head and only then the refund claim shall be entertained. Furthermore, question of foreign exchange realization does not arise as these export goods are free replacement of defective goods.