excise rebate and refund

[sukhvinder singh]

Dear Sir ,

Please clear ,can we claim the excise  duty rebate as per rule 18 of CER, 2002. of the cenvat credit accomulated  , or Duty draw Back on the same clerance made for export .also provide the judgement of Punjab and Haryana high court  for the year 2010 in relation to Nahar Spining  on the same subject.

 Thanks

[YAGAY andSUN]

Rebate under Rule 18 can be granted if the goods so removed were under payment of duty.  Drawback has following three aspects, namely:-

1. All Industry Rate
2. Duty drawback under section 74 of the Customs Act, 1962
3. Duty drawback under section 75 of the Customs Act, 1962 read with Customs, Central Excise Duties and Service Tax Drawback Rules.
If you have availed the CENVAT credit or claimed the rebate, then, under point no. 3 you would be able to get the drawback only for customs duties and Service Tax. No dual benefit would be available.

Though, I checked hard to dig out the required judgment of Nahar Spinning but could not find out any clue of it. 

However, following judgments will be of your use, namely:-

  In Suraj Filaments Pvt. Ltd.  2012 (10) TMI 266 - GOVERNMENT OF INDIA, MINISTRY OF FINANCE =2012 (282) ELT 149 (G.O.I)

H.M.T. v Commissioner  - (2008 (10) TMI 54 - CESTAT, NEW DELHI) = 2008 (232) ELT 217 (Tribunal LB)

ITC Ltd v Commissioner - (2004 (9) TMI 103 - SUPREME COURT OF INDIA) = 2004 (171) ELT 433 (SC)

Paper Products Ltd. v Commissioner - (1999 (8) TMI 70 - SUPREME COURT OF INDIA) =1999 (112) ELT 765 (SC)

PSL Corrosio Control Services Ltd. v Commissioner (2009 (1) TMI 559 - CESTAT, AHMEDABAD)=2009 (237) ELT 495 (Tribunal)

Swatantra Bharat Mills v Collector (1993 (7) TMI 102 - GOVERNMENT OF INDIA) = 1993 (68) ELT 504 (GOI)

CBE&C Circular No. 83/2000-Cus., dated 16-10-2000 [para 7] 

[Vijay kumar]

Accumulated credit on account of exports can be encashed in two ways - (i) By paying duty at the time of export and claiming rebate thereof in terms of Rule 18 of CER, 2002 read with Nofn.19/2004-CE(NT) or (ii) By claiming refund under Rule 5 of CCR, 2004 read with Nofn.27/2012-CE(NT) dt.18.6.2012. If u claim the latter, u cannot claim DBK, of which details are given by Mr.Khatri. As regards Nahar Spinning Mills case law, apparently, it does not pertain to refund or rebate but is on the issue of utilizing cenvat credit for payment of service tax on GTA.

[Sharad Sonawane]

Dear Sir,

We have 100 % EOU Unit we taking befit of EOU Scheme

can i take another Scheme in additional

Like Focus Market Scheme can i take with EOU

[Guest]

Customs Circular No. 35/2010  dated 17.09.2010 provides that :

"customs component of AIR drawback shall be available even if the rebate of Central Excise duty paid on raw material used in the manufacture of export goods has been taken in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of Central Excise duty under Rule 19 (2) of the Central Excise Rules, 2002". 

In view of above Circular No. 35/2010-Cus  dated 17.09.2010 confirming  the legal position on availability of  Rule 19(2) benefit as well as AIR Drawback.

[neha agrawal]

Is it not amounts to a loss if we will claim rebate U/R 18 instead of refund U/R 5, Because in case of rebate we have also paid duty on final product & we will be eligible only for the rebate of duty paid no refund oon inputs will be available in that case??

AI Summary

Excise rebate vs refund: choice determines drawback entitlement and how accumulated cenvat credit is encashed. Exporters can encash accumulated CENVAT credit either by paying excise duty on exported goods and claiming an excise rebate or by claiming a refund under the credit rules. If CENVAT credit is availed or rebate claimed, duty drawback is limited to customs duty and service tax components; dual recovery of central excise and drawback is not allowed. A customs circular confirms AIR drawback's customs component may still apply despite taking excise rebate or duty-free procurement of inputs.