Export of lubricating oils as ship stores under bond remained permissible despite a separate rebate notification under Rule 12.

Rule 12 and Rule 13 of the Central Excise Rules, 1944 operated in different fields for ship stores supplied to foreign-going vessels. Lubricating oils were covered by a Rule 12 notification for rebate-based export, but that did not exclude export under a separate Rule 13 notification permitting mineral oils as stores for consumption on board foreign-going vessels. The Rule 13 route was not limited to particular goods and remained available despite the existence of a specific Rule 12 notification. On that basis, denial of export under bond for lubricating oils was unsustainable, and the duty demand was not maintainable.

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Issues: Whether lubricating oils supplied as ship stores to foreign going vessels could be exported under Rule 13 of the Central Excise Rules, 1944 despite the existence of a notification under Rule 12 covering lubricating oils.

Analysis: Rule 12 and Rule 13 operated in different spheres. Notification No. 44/94-C.E. under Rule 12 specifically covered lubricating oils supplied as ship stores for rebate-based export, while Notification No. 48/94-C.E. under Rule 13 permitted export of mineral oils as stores for consumption on board foreign going vessels. The Rule 13 notification was not confined to particular goods and did not exclude lubricating oils. The mere fact that a specific notification existed under Rule 12 did not displace the availability of export under Rule 13.

Conclusion: The benefit of Rule 13 was available, and the duty demand based on denial of that route was unsustainable.

Final Conclusion: The appeal was allowed, and the assessee's export of lubricating oils as ship stores under bond was held to be permissible in law.

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