TMI Blog2011 (1) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... admissible to the applicants under Rule 18 of Central Excise Rules, 2002 read with Notification 21/2004-C.E. (N.T.), dated 6-9-2004 provided no cenvat credit or drawback is availed by the applicants. - Decided in favor of assessee. - 195/253-256/2008 & 195/2/2009-RA-CX - 1-5/2011-CX - Dated:- 17-1-2011 - Shri D.P. Singh, J. Ms. Reena Khair, Advocate, for the Assessee. [Order]. These revision applications have been filed by M/s. Om Sons Cookware Pvt. Ltd., M/s. Punjab Stainless Steel Industries, and M/s. Dharam Industries against the orders-in-appeal as mentioned in column No. 7 of the table passed by the Commissioner Central Excise (Appeals) Delhi-I, LP. Estate, New Delhi. TABLE Sl. No. File No. Name of the Applicant Name of the Respondent Amount of Rebate (Rs.) Period of dispute Number Date of Order-in-Appeal (O.I.A.) (1) (2) (3) (4) (5) (6) (7) 1. 195/253-254/08-RA M/s. Om Sons Cookware Pvt. Ltd. CCE Delhi-I 2,00,170/- August, 2005 26/CE/DLH/08 dated 14-3-2008 2. 195/255-256/08-RA M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollection of Taxes Act, 1931 (16 of 1931), the force of law. 2.1 It was submitted that it is evident from the above that the additional duty paid under Section 3 of the Customs Tariff Act, 1985 i.e. CVD has not been specified in the above explanation to the Notification No. 21/2004-C.E.(N.T.) dated 6-9-2004. Hence no rebate of such duty was admissible under this Notification. Further it was submitted that the party had claimed the rebate of the CVD paid on the raw materials used in the manufacture of exported goods and the adjudicating authority sanctioned the rebate in respect of the CVD paid on the raw materials as per details mention in the above table. The Applicant prayed that the orders sanctioning the amount of CVD may be set aside. These appeals by the department were allowed by the Commissioner (Appeals). 3. Being aggrieved by the impugned order-in-appeal, the applicants have filed these revision applications under Section 35EE of Central Excise Act, 1944 before Central Government on the following Identical/Common grounds :- 3.1 The Commissioner has disallowed the rebate on the CVD portion of the duty paid on the ground that the Notification did not cover CVD during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilized by the manufacturer or provider of output service towards payment of, (i) duty of excise on any final product cleared for home consumption or for export on payment of duty, or (ii) Service tax on output service Where for any reason such adjustment is not possible, the manufacturer, or the provider of output service shall be allowed refund of such amount under Rule 5 of Cenvat Credit Rules, 2004 subject to such safeguards, conditions and limitations, as may be specified by the Central Govt. by Notification. From above, it is clear that the Cenvat Credit of CVD paid can be utilized for payment of excise duty on any final product for home consumption or for export. And if such Cenvat Credit remains unutilized, it can be refunded to the manufacturer. 9. CBEC vide its Circular No. 83/2000-Cus. of 16-10-2000 has clarified that wherever duty appears, it is construed to having reference to Central Excise or the additional duty under Section 3 of the Customs Tariff Act, 1975. The relevant paras 4, 5, 6 are reproduced below for ready reference :- 4. A combined and harmonious reading of these provisions reveals that the word duty appearing anywhere in the Modvat Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Bond or undertaking without payment of duty. The purpose of both the schemes is the same that is to relieve the duties paid on the exported goods to make these competitive in international market to earn foreign exchange. As per Rule 18, the duty paid on goods exported and duty paid on materials used in manufacture or processing of such goods is to be be rebated. The Rule 18 of Central Excise Rules, 2002 reads as under : Rule 18 reads as under: Rule 18 : Rebate of Duty : Where any goods are exported, the Central Government may, by Notification, grant rebate of duty paid on such excisable goods and duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification. The plain reading of this rule makes it clear that duty paid on inputs/ materials is to be rebated. 11. Government notes that in the Notification No. 21/2004-C.E. (N.T.), dated 6-9-04 issued under Rule 18 of the Central Excise Rules, 2002 in the explanation, the additional duty of excise was not mentioned. It was added only vide Notification No. 12/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the imported inputs utilized in the manufacture/processing of the exported goods is admissible under Rule 18 of the Central Excise Rules, 2002. 13. Now the similar issue is decided by Hon ble High Court of Punjab and Haryana vide order dated 14-1-08 in Central Excise Appeal No. 10/07, in the case of CCE, Gurgaon v. Simplex Pharma Pvt. Ltd., 2008 (229) E.L.T. 504 (P H). In this case, the merchant exporter exported the goods under Notification No. 21/2004-C.E. (N.T.), dated 6-9-04 read with Rule 18 of the Central Excise Rules, 2002 and filed refund claims on the duty (CVD) paid on the imported inputs used in the processing/manufacturing of the exported goods which was rejected by the Assistant Commissioner and Commissioner (Appeals). The merchant exporter filed an appeal with the CESTAT who set aside the orders of the Commissioner (Appeals) and allowed the exporter s appeal. The department filed an appeal to the Hon ble High Court of Punjab and Haryana who vide order held Refund of Countervailing Duty - the eligibility of applicant for benefit of Cenvat/Modvat Credit on Countervailing Duty paid by him is not disputed by Revenue then applicant is entitled to payment/refund of sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, from the conjoint reading of the above referred provisions of the Act, it is crystal clear that the rebate of duty of excise on goods exported or on excisable material used in the manufacture of goods which are exported are eligible for refund and such refund includes rebate of duty as well as the duty of excise on excisable material and the refund of such rebate of duty is payable in cash to the applicant if such amount is relatable to rebate of duty of excise on excisable goods exported out of India on excisable material used in the manufacture of goods which is exported out of India Para 11 : From the facts on the record, it is not disputed that the Countervailing Duty amounting to Rs. 9,69,250/- paid by the applicant at the time of import of raw material was in fact a duty of excise equivalent to the excise duty payable on such raw material if manufactured in India and admittedly, the said raw material was consumed in the manufacturing of excisable goods exported out of India by the applicant on which excise duty equivalent to the amount paid by the applicant at the time of import of raw material was leviable. Further, the applicant is admittedly eligible for the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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