Export rebate under excise law limited to duty on transaction value; excess paid must be returned by Cenvat re-credit.

For export rebate, central excise duty is confined to the amount payable on the transaction value under Section 4 of the Central Excise Act, 1944. Where duty was paid on an amount higher than the value actually realised, the excess was treated as an erroneous payment of duty rather than rebateable cash duty. The excess amount was therefore returnable only by re-credit in the Cenvat account, not by cash refund. The order-in-appeal was set aside and the order-in-original restored, limiting cash rebate to duty relatable to the transaction value.

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Issues: Whether rebate of central excise duty on exported goods was admissible in cash only to the extent of duty relatable to the transaction value under Section 4 of the Central Excise Act, 1944, and whether the excess duty paid on the differential amount could be returned only by re-credit in Cenvat account.

Analysis: The revision turned on valuation under Section 4 of the Central Excise Act, 1944. The transaction value is the price actually paid or payable for the goods, and the duty on export goods had to be computed with reference to that value. On the facts, the buyer had realised only the amount reflected in the Bank Realisation Certificate, while duty had been paid on a higher amount. The excess paid over the transaction value was treated as a deposit erroneously paid as duty, not as duty eligible for cash rebate. The Board circular and the earlier Government of India order supported re-credit of the excess amount in Cenvat account rather than cash refund.

Conclusion: Rebate in cash was confined to the duty payable on the transaction value, and the excess amount was allowable only by way of re-credit in Cenvat account.

Final Conclusion: The order-in-appeal was set aside and the order-in-original was restored, with cash rebate limited to duty on transaction value and the excess to be taken back by re-credit.

Ratio Decidendi: For export rebate, duty is payable only on the transaction value under Section 4 of the Central Excise Act, 1944, and any amount paid in excess of duty so computed is not rebateable in cash but is returnable by Cenvat re-credit.

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