Rebate under Rule-18 on export made during 8.12.2006 to 17.9.2007

Assessee entitled to Rebate under Rule-18 of the Central Excise Rules, in respect of the export made during the period from 8.12.2006 to 17.9.2007

The company being an unit located in Kutch District is entitled to the benefit of Notification No.39/2001-CE dated 8.7.2001. At the time of removal of the goods from the factory for export, the Company paid duty of excise as is evident from the statutory invoices issued by the Company. The Company accordingly applied for rebate under Rule-18 of the said Rules which was granted to the Company until the respondent No. 3 issued Circular No. 209/11/2005 CX dated 8.12.2006, on the basis of which the respondent sought to deny rebate on the ground that the said exported goods are not considered to be duty paid since the said manufacturer was entitled to the excise duty refund under the said Notification.

By another Circular No. 209/11/2005 CX-6 dated 3.4.2007, the respondent No. 3 stated that for the purposes of rebate under Rule- 18, the goods cleared under area based exemption were not considered as duty paid. On 17.9.2007, the Central Government amended Rule-18 of the said Rules vide Notification No. 37/2007 CE (NT) dated 17.9.2007. By Section- 87 of Finance Act, 2008 rebate in respect of exports up to 8.12.2006 was granted.

The Court finds no merits or substance in any of the contentions raised by the respondents in justification of their stand to deny the benefit of rebate under Rule-18 of the Central Excise Rules, in respect of the export made during the period from 8.12.2006 to 17.9.2007. Both these petitions are, therefore, allowed to the above extent and the respondents are directed to grant the rebate forthwith as claimed.

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

Please become a Premium member. If you are already a Premium member, login here to access the full content.