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 unit was successful. The Central Government ruled in favor of the applicant, allowing the rebate claim under Rule 18 of Central Excise Rules, 2002. The Government emphasized that the goods supplied to the SEZ unit were duty-paid and confirmed received by the Customs Officer, qualifying for the rebate. The original rejection based on the lack of filing the Bill of Export was overturned, and the applicant's claim was deemed admissible.

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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.

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