Indorama Synthetics (I) Ltd Vs Union of India & Ors. (Bombay High Court)
Bombay High Court held that exporters are entitled to both input side and output side rebate under Rule 18 of the Central Excise Rules, 2002 and not just one kind of rebate. Thus, present writ petition allowed.
Facts- The Petitioner is engaged in the manufacture of Draw Texturised Yarn (DTY) falling under Chapter Heading 5406 & Polyester Staple Fibre (PSF) falling under Chapter Heading 5506. During the period January 2008 to April 2008, the Petitioner cleared its final products within India on payment of excise duty. Apart from this, during this period, the Petitioner also cleared a part of its production for export on payment of excise duty.
The Petitioner cleared consignments of the final products on payment of central excise duty for export under the claim of rebate under Rule 18 of Central Excise Rules, 2002. Therefore, the Petitioner claimed the following two benefits in relation to exports to relieve the burden of taxation on exported goods i. Output stage: Rebate of the excise duty paid on the finished goods in terms of Rule 18 of Central Excise Rules, 2002 read with Notification No. 19/2004-CE(NT) dated 6.9.2004; & ii. Input stage: Drawback of customs duty and excise duty at then prevailing rate of 16% being the rate applicable when cenvat credit had not been claimed.
