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International Tractors Ltd. Versus Commissioner of Central Excise & Service Tax

2017 (7) TMI 513 - DELHI HIGH COURT

Rebate - Whether the petitioner is entitled to rebate of duty under Rule 18 of the Central Excise Rules, 2002 (“CER"), having availed of the benefit of Notification No.93/2004-Cus dated 10th September, 2004 issued u/s 25 (1) of the CA, 1962? - Held that: - It is the admitted position that the petitioner has availed the benefits under the Advance Authorizations by importing input material and exporting the manufactured goods. The petitioner has, thus, availed of the benefit of non-payment of .....

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A party cannot be allowed to avail of both the exemptions when clearly, the intention seems to be to permit only one exemption. - Once an export transaction has been used for seeking discharge of Advance Authorizations issued under the CA, the same export transaction cannot be used for seeking rebate of duty under CER, as the rebate, in this case, is subject to the conditions and limitations, as specified in Notification No.93, which clearly requires that ‘the facility under Rule 18 or Sub-r .....

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, Adv ORDER Prathiba M. Singh, J. Question involved 1. The short issue arising in the present case is : Whether the petitioner is entitled to rebate of duty under Rule 18 of the Central Excise Rules, 2002 ( CER"), having availed of the benefit of Notification No.93/2004-Cus dated 10th September, 2004 issued under Section 25 (1) of the Customs Act, 1962 ( CA ) ("Notification No. 93") Background facts 2. The background facts are that the petitioner is a manufacturer of various model .....

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erification, for the purpose of claiming of rebate of duties. 4. Petitioner filed 39 rebate claims claiming rebate of duties for its exports during the relevant period. The said claims were not allowed. However, show cause notices were issued by the Deputy Commissioner, Central Excise and Service Tax, Large Taxpayer Unit, New Delhi. Vide order dated 30th September, 2010 the said show-cause notices were adjudicated and the claims of the Petitioner were rejected. 5. The petitioner preferred 39 app .....

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prays for its rebate claims to be allowed. Relevant Provisions/Notifications 7. Rule 18 of the CER, 2002 reads as under:- Where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or 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 fulfilment of such procedure, as may be specified in the notification. Explanation.- For the pur .....

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being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India against an Advance Licence issued in terms of paragraph 4.1.3 of the Foreign Trade Policy (hereinafter referred to as the said licence) from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tarrif Act, 1975 (51 of 1975) and form the whole of the additional duty, safeguard duty and anti-dumping duty leviable thereon, respectiv .....

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acility under rule 18 or sub-rule (2) of 19 of the Central Excise Rules, 2002 has not been availed) Provided that an Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant products to ultimate exporter in terms of Paragraph 4.1.3(b) of the Foreign Trade Policy; Submissions of the Parties 9. Mr. Rupesh Kumar, learned counsel for the petitioner, submitted that tractors manufactured by the petitioner consist of both indigenous components and imported compon .....

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ny notification issued under the CA. Mr. Kumar refers to the order dated 24th February, 2014 of the RA and states that the RA has merely relied upon the earlier order being GOI Revision Order No.09-37/11-Cx dated 18th January, 2011 and reiterated the same reasoning as given in the said order. He also submits that the benefit given to an applicant under Rule 18 CER is not interlinked with any other benefit or licenses. However, the RA has held to the contrary. 11. Mr. Sanjeev Narula, learned Seni .....

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said Advance Licenses upon effecting exports, cannot avail the double benefit of rebates under Rule 18 CER. The whole of the duty of customs having been exempted qua the imports made by the petitioner, the petitioner is duty bound to comply with the conditions in the said licenses. It is his submission that while seeking discharge of the said advance licences, the entity availing the discharge has to assure that in respect of the said exports, benefit under Rule 18 CER has not been availed. The .....

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other and they form a part of the broader canvas. A person, who has availed the benefit under Notification No.93, is doing so, under the clear understanding that the rebate of duty under Rule 18 CER would not be available. Analysis and Findings 14. It is the admitted position that the petitioner has availed the benefits under the Advance Authorizations by importing input material and exporting the manufactured goods. The petitioner has, thus, availed of the benefit of non-payment of customs duty .....

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