i. Duty paid on such excisable goods which are exported out of India, or
ii. Duty paid on materials used in the manufacturing or processing of such goods.
A Judgement was passed in the case of Rajasthan Textile mills v. UOI (2013) 298 ELT 183 (Raj.) wherein it was held that export rebate as provided in Rule 18 of Central Excise Rules, 2002 is allowed only on duty paid on one of the items i.e. either on excisable goods, or, on material used in manufacture/ processing of such goods. Hence, the assessee is not entitled to claim rebate on both item simultaneously.
The notification contains such conditions or limitations and fulfilment of such procedures on the basis of which rebate shall be granted.
Now let us see the conditions and limitations subject to which rebate is granted on excisable goods:-
Rebate of the whole of the duty on all excisable goods which are falling under First Schedule to Central Excise Tariff Act, 1985, exported to any country other than Bhutan, is granted subject to the conditions and limitations, specified hereunder –
[Held in the case of Kosmos Healthcare Pvt. Ltd v. ACCEx.(2013) 297 ELT 345 (Cal.) that non adherence of time limit of six months is not a mere procedural infraction but the same can be extended or condoned by Commissioner of Central Excise in his discretion]
[Held in the case of Welspun Corporation ltd. v. UOI (2014) 301 ELT 33 (Guj.) that claim for rebate accrues upon actual export; therefore, rebate notification as it stands on date of actual export is applicable for grant of rebate]
The above conditions and limitations for grant of refund has been passed by [Notification No. 19/2004-CE (N.T.), dated 06-09-2004].
(The above article is contributed by Dipesh Murarka having professional and academic interests in Accounts, Auditing and Taxation arenas. He can be approached at [email protected])