CVD rebate requires export under the rebate scheme, not a drawback export; rejection of the claim sustained.

Rebate of CVD is not available where imported goods are re-exported under a drawback claim rather than under the rebate scheme. Compliance with Rule 18 of the Central Excise Rules, 2002 and Notification No. 40/2001-C.E. (N.T.) requires that the export be made in the manner prescribed for rebate; a drawback export does not satisfy those preconditions. The scheme was described as export-oriented and linked to earning foreign exchange, so the claim for rebate was correctly rejected and its rejection sustained.

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Issues: Whether rebate of CVD was admissible when the goods were re-exported under claim of drawback rather than under the rebate scheme.

Analysis: The applicant had re-exported imported goods under a drawback claim. The record did not show that the CVD had been refunded by the customs authorities, but the governing condition for rebate under Rule 18 of the Central Excise Rules, 2002 and Notification No. 40/2001-C.E. (N.T.) dated 26-6-01 required compliance with the rebate scheme. Since the export was treated as a drawback export and not as an export under rebate, the preconditions for rebate were not satisfied. The scheme of rebate was also noted to be export-oriented and linked with earning foreign exchange.

Conclusion: Rebate of CVD was not admissible, and the rejection of the rebate claim was sustained.

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