Mahashakti Coke Vs Union of India & Ors. (Gujarat High Court)
The Gujarat High Court considered a group of writ petitions arising from a common issue relating to rebate of central excise duty under Rule 18 of the Central Excise Rules, 2002. The petitioner, a manufacturer of metallurgical coke, exported consignments after paying excise duty on the quantity cleared from its factory. During transportation from the factory to Mundra Port, the weight of the goods reduced due to alleged loss of moisture. Consequently, the quantity recorded in the shipping bills at the time of export was lower than the quantity originally cleared from the factory.
The petitioner claimed rebate of duty on the entire quantity cleared from the factory, contending that the reduction in weight resulted solely from evaporation of moisture inherent in the nature of metallurgical coke. It argued that there was no diversion of goods, the entire cargo received at the port was exported, and rebate should be granted on the full quantity on which duty had been paid. The petitioner also relied upon a surveyor’s certificate and judicial precedents to support its claim that rebate should correspond to the duty paid rather than the reduced export quantity.
