Drawback and refund cannot be combined by a mere Cenvat debit for the same exports.

An exporter who has already received drawback cannot claim an additional refund or rebate on the same exports by merely debiting the notional Central Excise component in the Cenvat credit account. The split of drawback into Customs and Excise components was treated as an accounting exercise only, so the cash drawback already availed was not regarded as surrendered by a mere book entry. On that basis, the refund claim was not sustainable and the departmental appeals succeeded.

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Issues: Whether an exporter who had already availed drawback could still claim refund from the Central Excise authorities by merely debiting the Central Excise portion of the drawback in the Cenvat credit account.

Analysis: The benefit of drawback was held to have been availed in full when cash drawback was received from the Customs department. The split of drawback into Customs and Excise components was treated as an accounting exercise and not as a separate, divisible benefit in the hands of the exporter. Mere debit of the so-called Central Excise portion in the Cenvat account did not amount to surrendering the drawback already taken. On the facts, the exporter had attempted to combine drawback with refund or credit-based relief, which was impermissible.

Conclusion: The refund claim was not sustainable and the Revenue succeeded on this issue.

Final Conclusion: The orders allowing refund were set aside and the departmental appeals were allowed, restoring the adjudication rejecting the refund claim.

Ratio Decidendi: An exporter cannot retain drawback already availed and, by a mere accounting debit in the Cenvat account, obtain an additional refund or rebate in respect of the same exports.

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