Duty-free export removals from other premises qualify when the prescribed export procedure is followed under Rule 19(2).

Rule 19(2) permits duty-free removal of goods from a factory, warehouse, or other premises for use in manufacture or processing of export goods, provided the prescribed export procedure is followed. The expression "any other premises" is broad enough to cover supplies cleared under CT-3/Annexure-I to a 100% EOU or exporter, so export benefit cannot be denied merely because the supplier was not the direct manufacturer. On that basis, the credit reversed in relation to the clearance was refundable, and the rejection of refund was set aside with consequential relief.

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Issues: Whether goods removed from the appellant's premises to a 100% EOU/exporter under CT-3/Annexure-I could qualify for the export procedure and whether the credit reversed on that basis was refundable.

Analysis: The goods were cleared on departmental CT-3 certificates and the recipient units followed the export procedure contemplated by the relevant notification. Rule 19(2) permits removal without payment of duty from a factory, warehouse or any other premises for use in the manufacture or processing of goods meant for export. The rule is not confined to direct clearance only from the manufacturer's own factory, and the expression "any other premises" broadens the permissible source of supply. In that setting, denial of the export benefit merely because the appellant was not the direct manufacturer-supplier was not warranted.

Conclusion: The appellant was entitled to the export benefit and the refund of the credit reversed was admissible.

Final Conclusion: The appeal succeeded and the rejection of refund was set aside with consequential relief to the appellant.

Ratio Decidendi: Rule 19(2) allows duty-free removal of material for export use from premises other than the manufacturer's factory, so long as the prescribed export procedure is followed and the goods are used for manufacture or processing of export goods.

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