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2016 (3) TMI 550 - MADRAS HIGH COURT

2016 (3) TMI 550 - MADRAS HIGH COURT - 2016 (334) E.L.T. 584 (Mad.) - Claim of refund / rebate simultaneously while claiming benefit of duty drawback - export of yarn - Duty was paid utilizing the credit of duty paid on the capital goods - Entitlement to claim rebates under Notification No. 19/2014-CE (NT), dated 06.09.2004 - Held that:- the benefits claimed by the petitioners are covered under two different statutes, one under Customs, Central Excise Duties and Service Tax Drawback Rules 1995 u .....

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it of Certiorari to call for the records relating to the order No.51/2015-CX dated 24.08.2015, passed by the first respondent and quash the same. 2.It is the case of the petitioner that they are manufacturers of synthetic and blended textile yarn made out of raw materials, viz., duty paid polyester staple fiber or polyester viscose staple fiber. The petitioner utilised the said duty paid inputs without availing the benefit of cenvat credit of the duty paid on the materials, as available under th .....

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cidence, either on the inputs or on the finished goods. Thus, a manufacturer can either export the finished product without payment of duty, or if he exports the same on payment of duty, he can claim rebate or refund of the duty, paid on the finished goods exported. If the manufacturer however uses raw materials on which duty was paid and if no credit of the same was availed, he can apply for rebate or refund of the duty paid on such raw materials used. 4.Further, according to the petitioner, Ru .....

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nment of India announced All Industry Rates Drawback on goods exported from India. The All Industry Rates Drawback compensate the exporters for the incidence of duties suffered by them on the inputs, raw materials and consumables and service tax paid on the input services, used in the manufacture of export goods. According to the petitioners, the yarn, exported by the petitioner, is covered under the Drawback Scheme. 6.The petitioners exported the finished goods on payment of duty and claimed re .....

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th cenvat credit facility and higher rate of drawback simultaneously. 7.Aggrieved over the same, the petitioners preferred an appeal before the second respondent under Sec.35 of the Central Excise Act and the second respondent also dismissed the appeal and confirmed the order of the fourth respondent. 8.Aggrieved over the order passed by the second respondent, the petitioner filed a revision before the first respondent under Sec.35 EE of the Central Excise Act. The first respondent also rejected .....

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ds themselves. In the Order, it is also stated that the rebate can be availed of the duty paid only on one of the stages, i.e., either of the duty paid on the finished goods or the duty paid on the materials used in the manufacture. 9.In support of his contention, the learned counsel relied on an unreported judgment of the Hon'ble Supreme Court made in Civil Appeal No.1978 of 2007 dated 9.10.2015, which reads as follows: "26.Likewise, in Mazagon Dock Ltd vs The Commissioner of Income Ta .....

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t was explained in the following manner: "10. The word "or" in the clause would appear to be rather inappropriate as it is susceptible of the interpretation that when some profits are made but they are less than the normal profits, tax could only be imposed either on the one or on the other, and that accordingly a tax on the actual profits earned would bar the imposition of tax on profits which might have been intended, and the word "or" would have to be read in the cont .....

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rebates under Rule 18 and not one kind of rebate. The impugned judgments are, accordingly, set aside allowing these appeals. 10.Countering the submissions made by the learned counsel for the petitioners, Mr.V. Sundareswaran, learned Standing Counsel, appearing for the respondents, submitted that the respondents have considered all the aspects and rightly rejected the case of the petitioners. The learned Standing Counsel further submitted that there is no infirmity in the order passed by the firs .....

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double benefit. 13.While sanctioning rebate, the export goods, being one and the same, the benefits availed by the petitioners on the said goods, under different scheme, are required to be taken into account for ensuring that the sanction does not result in undue benefit to the claimant. The 'rebate' of duty paid on excisable goods exported and 'duty drawback' on export goods are governed by Rule 18 of Central Excise Rules, 2002 and Customs, Central Excise Duties and Service Tax .....

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the export of goods at such amount, or at such rates, as may be determined by the Central Government provided that where any goods are produced or manufactured from imported materials or excisable materials or by using any taxable services as input services, on some of which only the duty or tax chargeable thereon has been paid and not on the rest, or only a part of the duty or tax chargeable has been paid; or the duty or tax paid has been rebated or refunded in whole or in part or given as cre .....

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