Rebate on exported excisable goods denied where electric motors were only fitted into machinery and not separately exported.

Rebate under Rule 12 of the Central Excise Rules, 1944 was confined to excisable goods actually exported in accordance with the notification conditions. Where electric motors were not exported separately but were fitted as component parts in grinders and drilling machines exported outside India, their inclusion in the machinery did not amount to export of the motors themselves. The rebate claim on the motors was therefore not admissible and was rightly rejected.

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Issues: Whether rebate of duty under Rule 12 of the Central Excise Rules, 1944 was admissible when electric motors were not separately exported but were only fitted as component parts in grinders and drilling machines exported outside India.

Analysis: Rule 12 permits rebate only in respect of excisable goods exported outside India in accordance with the conditions and limitations specified in the notification issued under that rule. On the facts found, the exported goods were grinders and drilling machines fitted with electric motors, and the electric motors were not exported as separate goods. The presence of the motors as component parts of the exported machinery did not amount to export of electric motors or parts within the meaning of the rule and the notification.

Conclusion: Rebate under Rule 12 was not admissible on the electric motors, and the claim was rightly rejected.

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