Customs-only drawback does not by itself bar rebate of central excise duty on exported goods.

Rebate of central excise duty on exported goods could not be denied merely because the exporter had claimed drawback limited to the customs component under the All Industry Rate. The governing rebate notification did not bar relief in those circumstances, and the record did not show any claim for the central excise portion of drawback. Board circulars supported the view that customs-only drawback did not amount to double benefit. The denial was therefore set aside, and the matter was remanded for sanction of rebate if the claim was otherwise in order and the drawback remained confined to the customs portion.

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Issues: Whether rebate of central excise duty on exported goods could be denied merely because the exporter had claimed drawback only on the customs portion under the All Industry Rate.

Analysis: The goods had been cleared on payment of central excise duty and exported. The claim for rebate was rejected below on the assumption that any claim of drawback barred rebate. The governing rebate notification did not bar rebate where drawback was claimed under the All Industry Rate, and the material on record did not show that the exporter had claimed the central excise portion of drawback. The cited board circulars supported the position that claim of only the customs component of drawback did not amount to double benefit. The record also showed that similar claims had been sanctioned in comparable cases.

Conclusion: The denial of rebate was not justified on the sole ground that drawback of the customs portion had been taken; the matter was remanded for sanction of rebate if the claim was otherwise in order and the drawback was confined to the customs portion.

Final Conclusion: The revision succeeded, the orders below were set aside, and the matter was sent back for fresh action consistent with the view that customs-only drawback does not by itself exclude rebate of central excise duty.

Ratio Decidendi: Claim of drawback limited to the customs component does not, by itself, preclude rebate of central excise duty on exported goods unless the governing rebate conditions expressly bar such relief or the central excise portion of drawback has also been claimed.

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