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2013 (2) TMI 308 - GOVERNMENT OF INDIANotification No. 33/99-C.E., dated 8-7-1999 – C.B.E. & C. Circular dated 8-12-2006 (F. No. 209/11/2005-CX-6) – Claim of rebate of duty - The applicants purchased the inputs i.e. menthol - which was manufactured by M/s. Eldorado Holdings Pvt. Ltd., a unit located in the North East who cleared (input) menthol by availing exemption under Notification No. 33/99, dated 8-7-1999 – Rebate claim rejected because the same was not admissible in terms of Notification No. 37/2007-C.E. (N.T.), dated 17-9-2007 read with Rule 18 of the Central Excise Rules, 2002 – Held that:- As per the Central Excise invoices, in the hand of the buyers, all such goods are duty paid, despite the fact that the manufacturers availed exemption by way of refund. The buyers are eligible to avail Cenvat credit of duty so borne by them or rebate of duty so paid on the inputs in case of export – Board’s instructions dated 8-12-2006 cannot be applied to such units as it clarifies that the term ‘duty paid’ used in Rule 18 of the Central Excise Rules, 2002 does not include that portion of duty, which is subsequently refunded to the ‘manufacturer’ (units availing area based exemption). Units located in other parts of the country are permitted to take full credit of duty paid on the inputs (procured from J&K North East, Sikkim and Kutch) under Rule 12 of the Cenvat Credit Rules, 2004. This rule is a special dispensation to ensure that the manufacturing units in North East etc., are not placed at disadvantage vis-à-vis units outside such areas. Further, there is no bar on utilizing this credit for payment of duty on goods cleared for exports. The units located in other parts of the country manufacture the goods, and pay the applicable excise duty on export of goods, and therefore, they are eligible to claim rebate of said duties under Rule 18 of the Central Excise Rules, 2002. In the present case, the units located in other parts of the country are the manufacturers, and no portion of duty paid by them is refunded to them, therefore rebate cannot be denied to such units.
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