2013 (6) TMI 688 - CGOVT - Central Excise

Successful Revision Application Grants Rebate Claim for Goods to SEZ Unit

The revision application filed by M/s. Ganesh Tiles & Marble Industries challenging the rejection of their rebate claim for goods supplied to a SEZ ... Denial of rebate claim - Denial on the ground that clearance of goods to SEZ cannot be considered as export for grant of rebate and also that applicant failed to fulfil the requirement of filing Bill of Export - Held that:- Since rebate claim is also export entitlement, the Bill of Export is required to be filed for clearances made to SEZ. Though Bill of Export is required to be filed for making clearances to SEZ, yet the substantial benefit of rebate claim cannot be denied only for this lapse. Government further observes that Customs Officer of SEZ Unit has endorsed on ARE-1 that the goods have been duly received by them. As the duty paid nature of goods and supply the same to SEZ is not under dispute, the rebate on export of duty paid goods under Rule 18 of Central Excise Rules, 2008 cannot be denied. As such the rebate claim is admissible in the instant case under Rule 18 of Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (NT)., dated 6-9-2004. - Decided in favour of assessee. Issues:Claim of rebate under Rule 18 of Central Excise Rules, 2002 for goods supplied to SEZ unit. Rejection of rebate claim by original authority. Appeal before Commissioner (Appeals) and subsequent rejection. Revision application filed before Central Government challenging the rejection.Analysis:The revision application was filed by M/s. Ganesh Tiles & Marble Industries against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals) regarding the rejection of their rebate claim for goods supplied to a SEZ unit. The original authority rejected the rebate claim stating that clearance of goods to SEZ cannot be considered as export for rebate grant and that the applicant failed to file the Bill of Export as required. The applicant then appealed to the Commissioner (Appeals), who also rejected their claim.The revision application before the Central Government argued that SEZs are treated as outside India, necessitating changes in domestic legislation, and therefore, clearance to SEZ should be considered as physical export. The applicant contended that duty paid on goods cleared to SEZ should be rebated to the exporter. The applicant cited relevant circulars and rules supporting their claim.Upon review, the Government noted that the goods were supplied to units in a Special Economic Zone and rebate claims were made under Rule 18 of Central Excise Rules, 2002. The original authority rejected the claims due to the lack of filing the Bill of Export and the view that goods supplied to SEZ do not qualify as exports for rebate purposes. However, the Government observed that as per Circular No. 29/2006-Cus., supply from DTA to SEZ is eligible for rebate subject to conditions. The Government further noted that the SEZ Rules, 2006 allow for procurement from the Domestic Tariff Area, and failure to produce the Bill of Export should not deny the substantial benefit of rebate claim.The Government emphasized that the Customs Officer of the SEZ Unit confirmed receiving the duty-paid goods, and since the duty paid nature of goods and their supply to SEZ were undisputed, the rebate claim under Rule 18 of Central Excise Rules, 2002 was deemed admissible. Consequently, the Government set aside the order in appeal and allowed the revision application, ruling in favor of the applicant.In conclusion, the revision application succeeded based on the grounds presented, and the impugned order was overturned by the Government, granting the rebate claim for goods supplied to the SEZ unit.