9911796707
TMI Blog2011 (9) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts of the case are that M/s. Polyplex Corporation Ltd., are engaged in the manufacture of Polyester Film. The applicant filed rebate claims in the office of the Assistant/Deputy Commissioner, Central Excise, Division- Rampur under Rule 18 of the Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 in respect of Central Excise duty paid on export goods. The rebate claims were initially sanctioned by the competent authority, which were thereafter sent for Post Audit to Central Excise, Head Quarters, Meerut-II. On scrutiny of the said rebate claims, the Audit Branch observed that the post facto verification of export was required in the rebate claims cases and that the action for recovery may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e implication of para 6 of sanction letter of ECGC 'that payment of this claim in Indian Rupees does not absolve the applicant, as an exporter of their obligation to RBI, Exchange Control Department in terms of GR form.' 4.2 Export of goods and services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the FEMA, 1999. Regulation 3 of FEM (Goods and Services) Regulations, 2000 requires that a declaration in form GR/SDF is to be submitted to the Customs, inter alia, affirming that the full export value of the goods or software has been or will within the specified period (normally 6 months under Regulation 9, ibid) be paid in specified manner i.e. through an authorized dealer. 4.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 18 of Central Excise Rules, 2002, does not talk of submission of BRC by any exporter while claiming rebate of duty paid on exports under Rule 18, either before or after sanction of rebate. 6.2 Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 lays down the terms and conditions and procedure to be followed by the manufacturer-exporter who wish to export the excisable goods on payment of duty with rebate claim procedure. The respondent submits that they have followed the terms and conditions and the procedure of Notification No. 19/2004-C.E. (N.T.) in letter and spirit. It is nowhere specified in the said Notification that export proceeds should be realized within a period of 160 days from the date of export/sanction. The said c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of Central Excise Rules, 2002, the Commissioner (Appeals) has correctly held that export proceeds were realized by the respondent from ECGC through whom the exports were insured. The overseas buyer to whom the goods were exported had gone into liquidation and due to this reason beyond the control of the respondent, the respondent could not realize the export proceeds from the foreign buyer. Since, the exports were ensured through ECGC against premium, on liquidation of the buyer, the respondent filed its claim before the ECGC against their policy premium. The ECGC vide their letter dated 21-9-2006 settled the claim of the respondent in respect of shipments to the foreign buyer from whom the respondent could not realize the export proceeds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign buyer went into liquidation and hence could not repatriate foreign exchange to the respondent. However, the respondents were insured for their exported goods by Export Credit Guarantee Corporation (ECGC) who settled their claim in Indian Rupees. The respondents argued that in terms of para 2.25.2 of Handbook of Procedure (Vol-I) of Foreign Trade Policy (FTP), 2004-09, the amount of insurance cover paid on account of insurance cover has to be treated as payment on account of exports under the various export promotion schemes. Government notes that the said RBI Circular No. 9/2008-09, specifically clarifies that claims settled in Indian Rupees by ECGC and Private Insurance Companies regulated by IRDA should not be construed as Export Rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded that exports are entitled for rebate benefit only if the export realization is received in foreign currency. Government find legal force in the contention of the applicant department that such settlement cannot be taken as actual realization of the impugned export sale proceeds for the purpose of grant of rebate. As such, action for recovery of sanctioned rebate is legal and proper, for non-compliance of provisions contained in Board's Circular No. 354/70/97-CX., dated 13-11-1997. 11. In view of above facts and circumstances, Government sets aside the order of appellate authority and allows the revision application. The impugned order-in-original gets restored. 12. Revision Application succeeds in terms of above. 13. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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