Export under bond exemption extends to additional excise duty where the charging provision adopts the excise rules.

Export under bond was held to attract the exemption scheme in the Central Excise Rules when the charging provision for additional duty of excise expressly incorporated the Excise Act and rules relating to exemptions and refunds. Rule 13, read with Rule 14, permitted export of goods without payment of duty on execution of bond, and that benefit extended to the additional duty on television sets unless the statute clearly excluded it. No contrary legislative intention was found, so the levy on the exported goods was not sustainable and the exporter was entitled to remove the goods without payment of the additional excise duty.

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Issues: Whether goods exported under bond under the Central Excise Rules were exempt from the additional duty of excise levied on television sets under Section 49 of the Finance Act, 1985.

Analysis: Section 49(3) provided that the provisions of the Central Excise Act and the rules made thereunder, including those relating to refunds and exemptions, would apply to the additional duty of excise in the same manner as they applied to ordinary excise duty. Rule 13 permitted export of goods without payment of duty on execution of bond, and Rule 14 supported that scheme. Since the statutory scheme extended exemption provisions to the additional duty as well, a clear contrary intention in the levy provision was required to deny the benefit for export goods, and none was found.

Conclusion: The exemption available for export under bond applied to the additional duty of excise, and the levy on the exported television sets was not sustainable.

Final Conclusion: The petitioner was entitled to export the television sets without payment of the additional excise duty, and the writ petition succeeded.

Ratio Decidendi: Where the charging provision expressly applies the excise Act and rules relating to exemptions to an additional duty of excise, the export-under-bond exemption under the rules extends to that additional duty unless the statute clearly excludes it.

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