Procedural lapse in export rebate claim condoned where documentary evidence proved export of goods under supervision.

Rebate of central excise duty on FIBC bags used to pack exported Isabgol was held admissible despite non-filing of the declaration required by the notification, because export records, shipping documents and customs endorsement established that the goods were actually exported under central excise supervision. The procedural defect was treated as non-fatal and condoned under the proviso to Rule 12 in the interest of export promotion, subject to verification that the exports and claims in each case were otherwise in order.

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Issues: Whether rebate of central excise duty was admissible on FIBC bags used for packing exported Isabgol despite non-compliance with the declaration procedure prescribed under the relevant notification.

Analysis: The export records showed that the containers were stuffed and sealed under central excise supervision, customs had endorsed the export, and the packing was evidenced by the shipping documents and bill of lading. Although the exporters had not filed the declaration contemplated by Notification No. 42/94-C.E. (N.T.), the factual export of the goods for which rebate was claimed was established by documentary evidence. In these circumstances, the procedural lapse was not treated as fatal, and the proviso to Rule 12 was applied to condone the defect in the interest of export promotion.

Conclusion: Rebate was held admissible, and the revision applications were allowed, subject to verification that the exports and claims in each case were otherwise in order.

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