Rebate under Rule 18 was barred for Advance Licence exports using duty-free imported inputs and indigenous-input claims.

Rebate of duty under Rule 18 of the Central Excise Rules, 2002 was unavailable where export obligation under Advance Licence Notification No. 93/2004-Cus was discharged through export of resultant products manufactured in India without availing the Rule 18 or Rule 19(2) facility. The amended condition in para V barred rebate on goods exported under that scheme when duty-free imported inputs had been used and rebate was also claimed on indigenous inputs in the same exported goods. On that reading, the claim was not admissible and the revision applications were rejected.

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Issues: Whether rebate of duty under Rule 18 of the Central Excise Rules, 2002 was admissible on indigenous inputs used in exported goods when the exports were made for discharge of export obligation under Advance Licence covered by Notification No. 93/2004-Cus dated 10-9-04.

Analysis: The exports were made under an Advance Licence scheme governed by Notification No. 93/2004-Cus dated 10-9-04. The amended condition in para V of that notification provided that the export obligation would be discharged by exporting resultant products manufactured in India in respect of which the facility under Rule 18 or sub-rule (2) of Rule 19 of the Central Excise Rules, 2002 had not been availed. The Court found that the applicants had used duty-free imported inputs under the Advance Licence and also claimed rebate on indigenous inputs used in the exported goods. On a plain reading of the amended condition, such rebate was barred.

Conclusion: Rebate under Rule 18 of the Central Excise Rules, 2002 was not admissible, and the revision applications were rightly rejected.

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