Rebate on SEZ supplies cannot be denied for missing Bill of Export when goods were duly admitted and certified.

Rebate of duty on duty-paid goods supplied from the Domestic Tariff Area to a Special Economic Zone could not be denied solely because a Bill of Export was not filed where the goods were admitted into the Special Economic Zone on ARE-1 and receipt was certified. Rule 30 of the Special Economic Zone Rules, 2006 and the relevant Board circular required supporting export documentation, but the omission was treated as a technical procedural lapse that did not defeat the substantive fact of clearance to the Special Economic Zone. The rebate claim under Rule 18 of the Central Excise Rules, 2002 was therefore admissible, and rejection on that ground alone was not justified.

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Issues: Whether rebate of duty paid on goods supplied from the Domestic Tariff Area to a Special Economic Zone could be denied for not filing a Bill of Export, and whether such omission was only a procedural lapse when the goods had been admitted in the Special Economic Zone on the basis of ARE-1.

Analysis: Rule 30 of the Special Economic Zone Rules, 2006 and the Board circular required the movement of goods to the Special Economic Zone to be supported by ARE-1 and Bill of Export where export entitlements were being availed. The claim here was for rebate under Rule 18 of the Central Excise Rules, 2002 on duty-paid goods cleared to the Special Economic Zone, and the receipt of goods in the Special Economic Zone was certified. The omission to file Bill of Export did not affect the fact of export/clearance to the Special Economic Zone and was treated as a technical procedural lapse. The denial of rebate on that ground alone was therefore not justified.

Conclusion: The rebate claim was admissible and the absence of Bill of Export did not warrant rejection of the claim. The order allowing rebate in favour of the assessee was upheld.

Final Conclusion: The revision application failed and the appellate relief granting rebate to the assessee was sustained, subject to the caution that repeated procedural lapses may justify denial in future cases.

Ratio Decidendi: A rebate claim cannot be denied merely for non-filing of Bill of Export when the substantive requirement of duty-paid goods having been admitted into the Special Economic Zone is satisfied and the defect is only procedural.

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