ABB Limited Vs Union of India & Ors. (Bombay High Court)
The petitions before the Bombay High Court involved common questions of law and were therefore disposed of through a common order. The petitioners, manufacturers of goods for domestic and export markets, had exported certain consignments on payment of excise duty under Rule 18 of the Central Excise Rules, 2002 and subsequently filed rebate claims for refund of such duty. These claims were rejected by the authorities solely on the ground of limitation.
The petitioners accepted that their rebate claims were time-barred and did not challenge the rejection on limitation grounds. Instead, they advanced an alternative claim, asserting that since no excise duty is payable on exported goods, the duty paid by them constituted excess payment. They contended that such excess duty could not be retained by the authorities and must be returned in the same form in which it was paid, i.e., through re-credit in the CENVAT account or refund in cash.
It was further argued that Rule 19 of the Central Excise Rules provided exemption from duty for exports, while Rule 18 allowed exporters to pay duty and claim rebate as an incentive. The petitioners emphasized that even if rebate claims were rejected as time-barred, the fundamental principle remained that no duty was payable on exports. Therefore, the duty paid became excess and should be refunded or re-credited.
