2009 (2) TMI 567 - AT - Central Excise

Tribunal emphasizes evidence in export claims, grants manufacturer chance to prove exports.

AROMATIC & ALLIED CHEMICALS Versus COMMISSIONER OF C. EX., MEERUT-II

The Tribunal set aside the orders of the Commissioner (Appeals) and the original authority, emphasizing the importance of evidence to support export ... Export - Procedural violation Issues involved: Appeal against order of Commissioner (Appeals) regarding export clearances claimed by the appellant and benefit of exemption under Notification No. 8/99 dated 28-2-99.Summary:The appellant, a manufacturer of chemical products, claimed to have exported goods valued at about Rs. 69 lakhs through merchant exporters and cleared only about 10 lakhs to the domestic market. The original authority confirmed a demand of Rs. 2,81,670/- due to non-compliance with the AR-4 procedure. The appellant argued eligibility for a simplified export procedure under Board Circular No. 212/46/96-CX. The dispute centered on whether the circular applied to the appellant and whether the goods were actually exported. The Tribunal held that export benefit should not be denied solely on procedural grounds. They remanded the matter to the original authority for the appellant to provide evidence of the exports within 45 days, including details of sales to merchant exporters and realization of export sale proceeds. The original authority was directed to decide the issue after a hearing.In conclusion, the Tribunal set aside the orders of the Commissioner (Appeals) and the original authority, emphasizing the importance of evidence to support export claims and granting the appellant an opportunity to provide such evidence for consideration.