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2017 (11) TMI 1781 - CGOVT - Central ExciseRebate of Central Excise duty in cash - Rule 18 of Central Excise Rules, 2002 - revision applications have been filed mainly on the ground that rebate of duty is to be granted in cash only under Rule 18 of Central Excise Rules, 2002 even if the duty is paid on the exported goods from Cenvat credit - C.B.E. & C. Circular No. 687/3/2003-cx, dated 3-1-2003 - Held that:- Rule 18 of Central Excise Rules, 2002 and Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 are examined and it is found that these two relevant provisions for this matter do not provide anywhere that if the duty of Central Excise is paid from Cenvat credit for exported goods then rebate of duty is to be granted in Cenvat credit account only. These two provisions talk of granting of rebate of duty only and the same can be possible only in cash and not in form of Cenvat credit as Cenvat credit can be availed and allowed only under Cenvat credit Rules, 2004 and there is no provision for availing or allowing Cenvat credit under Rule 18 of Central Excise Rules, 2002. Even the Central Board of Excise and Customs, an apex body to regulate the working of Central Excise related affairs, has clarified, vide its Circular No. 687/3/2003-Cx, dated 3-1-2003 issued from File No. 267/57/20020/Cx-8, has categorically clarified that there is no discretion with the sanctioning authority to give the refund of duty paid on the goods exported and duty paid through Cenvat credit must be refunded in cash only. The Government is of the clear view that Commissioners (Appeals) have committed an error by denying the rebate of duty to the applicant in cash - the applicant is held to be eligible for rebate of duty through cheques in these cases along with interest in accordance with Section 11BB of the Central Excise Act, 1944 as per which interest is payable in the event of not granting rebate of duty within 3 months of filing of original rebate applications - Revision application allowed.
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