Strict compliance with excise rebate conditions required; rebate denied where goods were not exported directly from the factory or warehouse.

Territorial jurisdiction was upheld because the assessee had itself invoked the Shimla authority's jurisdiction and the proceedings arose from that forum, so the objection failed. Excise duty rebate was denied because the governing notification required export of duty-paid goods directly from the factory or warehouse, and the goods were exported from a branch office instead. Strict compliance with the notification conditions was held essential, and the rebate claim accordingly failed.

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Issues: (i) Whether the High Court could entertain the reference when the assessee had submitted to the jurisdiction of the Shimla authorities and pursued the matter before the Kolkata Bench of the Tribunal. (ii) Whether rebate of excise duty could be allowed when the goods were not exported directly from the factory or warehouse as required by the governing notification.

Issue (i): Territorial jurisdiction was questioned on the basis that the assessee later objected to the forum. The assessee had itself invoked the jurisdiction of the Assistant Commissioner at Shimla, and the proceedings had arisen from that forum.

Conclusion: The jurisdictional objection was rejected.

Issue (ii): The rebate claim depended on compliance with the conditions in the applicable notification. The later notification required export of excisable goods after payment of duty directly from the factory or warehouse, and the goods in question had been exported from a branch office instead.

Conclusion: Rebate could not be granted, and the answer was against the assessee.

Final Conclusion: Both substantial questions of law were answered in favour of the Revenue, and the rebate claim failed for non-compliance with the notification conditions.

Ratio Decidendi: A claimant to excise rebate must strictly satisfy the conditions prescribed by the governing notification, and rebate is unavailable where the goods are not exported in the manner expressly required.

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