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2018 (4) TMI 1656 - CGOVT - Central ExciseRebate claim - rejection on the ground that the rebate of duty in respect of basic Customs duty was not admissible and the rebate of duty for additional duty of Customs only could be granted - Rule 18 of CER 2002, read with N/N. 21/2004-C.E. (N.T.) - Held that:- The Government finds that the lower authorities have confused the central excise duty paid by the applicant in respect of inputs as customs duty for the reason that measure of levy of central excise duty on the goods manufactured by the 100% EOU is equivalent to the aggregate of the Customs duty under Section 3 of the Central Excise Act. But for this reason alone the excise duty leviable on such goods cannot be misconstrued as duty of customs and the legal reality is that the duty levied under Section 3 of the Central Excise Act on the goods manufactured by 100% EOU is Central Excise only even when the measure of levy is the Customs duty. The Government is fully convinced that entire duty paid by the applicant in respect of the inputs at the rate of 21% is duty of excise only and the rebate of the same is allowed under Rule 18 of the C.E.R., 2002 and Notification No. 21/2004-C.E. (N.T.), as the compliance of these two governing provisions are not doubted by the lower authorities also in his case - The splitting of the central excise duty into B.C.D. and V.D. and to confuse the entire matter was wholly unwarranted - Further the Government’s policy enshrined in the Rule 18 and N/N. 21/2004-C.E. (N.T.) is that no tax should be exported along with the goods. The Government is convinced that the Commissioner (Appeals) has passed an erroneous order by disallowing the rebate of duty of ₹ 2,09,213/- to the applicant - revision application allowed.
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