2016 (7) TMI 803 - CGOVT - Central Excise

Government upholds denial of duty rebate claim for exported goods under Notification No. 21/2004-CE(NT)

M/s Themis Medicare Limited, Haridwar Versus Commissioner of Customs & Central Excise, Meerut-l

The Government rejected the revision application filed by M/S Themis Medicare Limited regarding a duty rebate claim under Notification No. 21/2004-CE(NT) ... Rebate / refund claim - input stage credit - inputs used in the manufacture of their export goods - claim was rejected on the grounds that the applicant has manufactured and exported the finished goods before filing the requisite declaration under the said notification and failed to fulfil the condition of the Notification No. 21/2004 -CE(NT) dated 06.09.2004. Held that:- While claiming the rebate under such Notification No.21/2004-NT dated 06.092004 the applicant should have ensured strict compliance of the conditions attached to the Notification No.21/2004-NT dated 06.09.2004. - Government finds that there is no provisions under Rule 18 of Central Excise Rules 2002 for condonation of non-compliance with the conditions and procedure laid down in the Notification allowing rebate under said Rule. In view of the above discussions, Government finds that the applicant failed to fulfill the above mandatory condition of the said provisions and the condition being mandatory the same is required to be followed by the applicant particularly when the applicant is the beneficiary in the claim of rebate. Revision application rejected - Decided against the applicant. Issues:Claim of duty rebate under Notification No. 21/2004-CE(NT) dated 06.09.2004 for exported goods.Analysis:The revision application was filed against the rejection of a duty rebate claim by M/S Themis Medicare Limited. The claim was rejected as the applicant exported finished goods before filing the required declaration under Notification No. 21/2004-CE(NT) dated 06.09.2004, thus contravening the provisions. The rejection was upheld by the Commissioner (Appeals), leading to the revision application.The applicant argued that the discussion in the impugned order was based on incorrect facts and documents. They claimed that the procedural lapse was rectified to the satisfaction of the competent authority and that there was no discrepancy in the rebate claim amount. The applicant also cited relevant case laws to support their position.The Government observed that the applicant failed to comply with the conditions and procedures specified in Notification No. 21/2004-CE(NT) dated 06.09.2004. The requirement to file a declaration describing the finished goods and the input-output ratio before export was not met by the applicant. The verification of the input-output ratio is crucial before export to prevent duty evasion, as stated in the notification.The Government emphasized that non-compliance with statutory conditions and procedures cannot be considered a minor procedural lapse. The benefit of rebate under the notification cannot be extended if conditions are not fulfilled. Various legal precedents were cited to support the mandatory nature of compliance with notification conditions.The Government found no provisions for condonation of non-compliance with the conditions and procedures under Rule 18 of Central Excise Rules 2002. As the applicant failed to fulfill mandatory conditions, the Government upheld the Commissioner (Appeals) order rejecting the rebate claim.In conclusion, the revision application was rejected by the Government for being devoid of merit, and the Commissioner (Appeals) order was upheld.