1984 (1) TMI 303 - AT - Central Excise

Tribunal Upholds Rejection of Rebate Claims on Exported Iron/Steel

STEEL ROLLING MILLS OF BENGAL LTD., CALCUTTA Versus COLLECTOR OF CENTRAL EXCISE, CALCUTTA

The Tribunal upheld the rejection of rebate claims on central excise duty paid on exported iron or steel products, dismissing the appeals. The appellants' ... - Issues:Appeal against rejection of rebate claims on central excise duty paid on exported iron or steel products.Analysis:1. Facts and Background: The appellants, re-rollers and exporters of iron or steel products, exported goods and claimed rebate on central excise duty. The dispute arose when show cause notices were issued requiring repayment of duty on billets, leading to a reduction in rebate claims by the Collector.2. Appellants' Arguments: The appellants argued that they complied with export formalities and paid duty on billets at a fixed rate, justifying their claim for rebate based on Notification No. 43/74 and 153/77. They contended that the duty on goods should be calculated after accepting payment on billets at a specific rate.3. Interpretation of Notifications: The Tribunal analyzed the relevant notifications and provisions, emphasizing the requirement to establish duty payment on exported goods to the satisfaction of the Collector. The Tribunal found that the appellants failed to provide evidence of duty payment on exported goods at the prescribed rate.4. Collector's Observations: The Collector correctly noted the legal position, emphasizing that rebate is permissible based on actual duty paid at the time of clearance of finished products for export. The Collector's decision aligned with the provisions of Rule 12 of the Central Excise Rules.5. Rejection of Claims: The Tribunal dismissed the appeals, concluding that neither Notification No. 43/74 nor 153/77 supported the appellants' case. Additionally, the Tribunal disregarded a departmental letter and rejected the appellants' plea regarding illegal adjustments in rebate amounts due to lack of substantiated evidence.6. Final Decision: In light of the above analysis, the Tribunal upheld the rejection of rebate claims on central excise duty paid on exported iron or steel products, thereby dismissing the 43 appeals.This detailed analysis of the judgment highlights the key arguments presented by the parties, the interpretation of relevant notifications, the Collector's observations, and the final decision of the Tribunal, providing a comprehensive overview of the legal issues involved in the case.