2019 (2) TMI 1428 - AT - Central Excise

Appeal Dismissed Due to Lack of Export Documentation

M/s Mecca Industries Versus C.C.E. & S.T. -Ahmedabad-iii

M/s Mecca Industries Versus C.C.E. & S.T. -Ahmedabad-iii - TMI Issues:Appeal against demand of Central Excise duty, interest, and penalty under section 11AC read with Rule 173Q of the Central Excise Act, 1944 based on the export of goods under Rule 56B of the Central Excise Rules, 1944.Detailed Analysis:Issue 1: Export of Goods under Rule 56BThe appellant, M/s. Mecca Industries, sought permission to clear goods for further processing to M/s. Core Healthcare during 1993-1997. The appellant claimed that the goods were exported from M/s. Core Healthcare's premises, supported by H forms under Central Sales Tax. The appellant argued that the Circulars dated 1996 and 2002 permitted the adoption of H forms for export through a merchant exporter. However, the Tribunal noted that the Circulars applied to fully exempted units and not to others. The Tribunal distinguished previous cases where bill of lading and shipping bills were submitted along with Form H, which was not the case here. The Tribunal found that M/s. Core Healthcare, being a registered unit, was not entitled to the concession given to small-scale units for export.Issue 2: Proof of ExportThe impugned order highlighted discrepancies in the documents submitted by the appellant, such as H forms, commercial invoices, and challans. The Tribunal noted that the appellant failed to produce H forms for some clearances listed in the order, weakening their claim of export. The order also questioned the correlation between the goods exported and those cleared by the appellant, citing lack of shipping bills or ARE-1 documents to establish actual export. The declaration by M/s. Core Healthcare was deemed insufficient evidence of export due to lack of supporting documentation and ongoing cases against them.Conclusion:The Tribunal dismissed the appeal, concluding that the appellant failed to substantiate the export claim based on the H forms issued by M/s. Core Healthcare. The lack of supporting documents, discrepancies in submissions, and the specific conditions of the Circulars led to the rejection of the appellant's argument. The judgment was pronounced on 01.02.2019 by the Tribunal consisting of Mr. Ramesh Nair, Member (Judicial), and Mr. Raju, Member (Technical).