2023 (9) TMI 352 - AT - Central Excise

Tribunal allows rebate claim for exported goods, directs refund to appellants. Decision sets aside order to credit amount to Consumer Welfare Fund.

M/s. Axon Drugs (P) Ltd. Versus Commissioner of GST & Central Excise

M/s. Axon Drugs (P) Ltd. Versus Commissioner of GST & Central Excise - TMI Issues: Rebate claim rejection, Consumer Welfare Fund creditRebate Claim Rejection: The appellants, engaged in manufacturing medicines, filed a rebate claim for exported goods. The claim was scrutinized, and it was found that a portion of the duty paid on exported goods was manufactured using duty-free inputs. A Show Cause Notice was issued proposing to reject the claim to the extent of the duty paid on such goods. The original authority sanctioned a rebate but ordered a portion of the amount to be credited to the Consumer Welfare Fund. The appellant challenged this order before the Tribunal.Consumer Welfare Fund Credit: The appellant argued that they had mentioned in their rebate claim that some exported goods were manufactured using duty-free inputs and requested re-credit to their CENVAT account. The adjudicating authority, despite sanctioning the refund, directed to credit the amount to the Consumer Welfare Fund, stating that the duty incidence had been passed on to the foreign buyer. The appellant contended that they had not collected excise duty from the foreign buyer as duty was paid only on the FOB value, not included in the CIF value billed to the foreign buyer. The Tribunal agreed with the appellant, finding that the duty incidence was borne by them, and directed the refund of the contested amount, setting aside the order to credit it to the Consumer Welfare Fund.Judgment: The Tribunal modified the impugned order, sanctioning the refund of the disputed amount to the appellant. The appeal was allowed with consequential reliefs, if any.