Rebate under Central Excise export rules applies only to the quantity actually exported, not the quantity cleared from the factory.

Under Rule 18 of the Central Excise Rules, 2002, rebate is linked to goods actually exported after duty payment, and the notification prescribing conditions and procedure governs its allowance. The Gujarat HC held that rebate must be computed on the quantity actually exported out of India, not on the quantity originally cleared from the factory or warehouse. Because the quantity shipped was lower than the quantity dispatched and no moisture content was declared at removal or at duty payment to explain the difference, the authorities correctly restricted rebate to the quantity shown in the shipping bills.

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Issues: Whether rebate of duty under Rule 18 of the Central Excise Rules, 2002 was payable on the quantity of metallurgical coke cleared from the factory or only on the quantity actually exported as reflected in the shipping bills.

Analysis: Rule 18 links rebate to goods exported after payment of duty and the notification issued under that rule prescribes the conditions and procedure for rebate. The Court held that the operative basis for rebate is the quantity actually exported out of India, not the quantity originally cleared from the factory or warehouse. On the admitted facts, the quantity shipped was lower than the quantity dispatched, and no moisture content was declared at the time of removal or duty payment to justify the differential. The authorities, therefore, correctly restricted rebate to the exported quantity shown in the shipping bills.

Conclusion: Rebate was correctly limited to the quantity actually exported, and the challenge to the impugned orders failed.

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