Denial of Central Excise Rebate Claim

[Ritesh Dave]

We are merchant exporter. We have procure the material from our supplier for the export.

The materials are dispatched under the central excise rebate claim and not against the CT-1.

At the time of the preparing A.R.E-1, We have not mention central excise details of the manufacturer in coloum 1. The Range, Division and commissionerate are correctly mention at the top of the A.R.E -1.

We have export the materials in time and hand over the original and duplicate A.R.E-1 to the manufacturer to claim central excise rebate claim. However, the rebate claim is rejected by the department of central excise of the manufacturer that you have wrongly mention central excise details and therefore you are not eligible for the claim.

Kindly advice.

Regards,

Ritesh Dave

[KASTURI SETHI]

Sh.Ritesh Dave Ji,

You will have to file appeal against this rejection order with the Commissioner(Appeals). There is no other option now. You should collect all documentary evidences of receipt of foreign exchange from the foreign buyer and other evidences. There must be some other evidence of procurement of goods from the manufacturer. This is very serious lapse. It is mandatory to mention the particulars of manufacturer on ARE-I. However, you may get relief either from Commissioner (Appeals) or CESTAT. You will have to fight for natural justice. I am hopeful you will get rebate claim ultimately. At the first stage such rebate claims are rejected. No officer wants to take risk.

[Ritesh Dave]

Thanks for your reply.

We have mention correctly, range, division and commissionerate details of manufacturer at the top of the A.R.E-1. But it is mention wrongly in the colum 1 of the A.R.E-1 i.e. details of the rebate / bond from whom it will be claim. Secondly, dispatched is not done under the factory stuffing but under the port stuffing and A.R.E-1 is filed with the central excise authority within 24 hours. In this case, Central Excise officer can point out the mistake rather than reject the claim, Can merchant exporter file rebate claim with his jurisdiction instead of manufacturer?

[KASTURI SETHI]

Nothing to worry. These are procedural lapses. Merchant exporter can file rebate claim but he will have to obtain Disclaimer Certificate from the manufacturer. But after the rejection, only appeal is the remedy. You will win the case in first appeal stage. Export rules are very liberal.

[KASTURI SETHI]

Sh.Ritesh Dave Ji,

This case law will be helpful to you

2015 (320) E.L.T. 667 (G.O.I.) = 2014 (12) TMI 994 - GOVERNMENT OF INDIA IN RE : TRICON ENTERPRISES PVT. LTD.

AI Summary

Merchant Exporter Faces Rebate Rejection Due to A.R.E-1 Form Errors; Appeals Process Advised for Resolution A merchant exporter faced rejection of a central excise rebate claim due to incorrect details in the A.R.E-1 form, despite correct range, division, and commissionerate information. The rejection was based on procedural errors, specifically incorrect manufacturer details. An advisor suggested filing an appeal with the Commissioner (Appeals) and collecting all relevant documentation, including foreign exchange receipts and procurement evidence. The advisor reassured that such claims are often initially rejected but can be resolved through appeals. It was also suggested that the merchant exporter could file the rebate claim with their jurisdiction, provided they obtain a Disclaimer Certificate from the manufacturer.