Rebate and Cenvat refund can coexist where rebate covers export duty only and input duty remains outside the claim.

Rebate under Rule 18 of the Cenvat Credit regime was confined to excise duty paid on exported final goods, while additional duty of excise paid on inputs was a separate levy not covered by that rebate claim. On that basis, unutilised Cenvat credit attributable to the input duty was not barred from refund under Rule 5 of the Cenvat Credit Rules, 2002, because no rebate had been sought for that duty. The contrary objection that rebate and refund could not both be claimed did not apply on these facts, and the refund was treated as admissible.

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Issues: Whether refund of Cenvat credit relating to additional duty of excise paid on inputs was admissible where the final products were exported on payment of duty and rebate was claimed under Rule 18.

Analysis: The Tribunal noted that the rebate claim under Rule 18 was confined to the excise duty paid on the exported final goods, relatable to Section 3 of the Central Excise Act, 1944. The additional duty of excise paid on the inputs under the Additional Duties of Excise (Textile and Textile Articles) Act was not the subject of the rebate claim. Since no rebate was claimed for that input duty, refund by way of Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002 was held to be available. The contrary view that the exporter could not claim both rebate and refund did not prevail on the facts considered.

Conclusion: The refund of Cenvat credit was held admissible and the Revenue's appeal failed.

Ratio Decidendi: Where rebate under Rule 18 is claimed only on duty paid on exported final goods, refund of unutilised Cenvat credit relating to duty paid on inputs is not barred, as the two claims operate on different levies.

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