Rebate / Refund of excise duty paid at the time of export "

Notification no. 19/2004 CE(NT) dated 6.9.2004 issued under rule 18 of the Central Excise rules, 2002 grants the procedure and conditions of claming rebate / refund of excise duty paid on goods exported to any country other than Nepal and Bhutan.

On the other side, various industries situated in certain specified areas are eligible for exemption under various notifications under a special scheme of exemption. Under this scheme these units pay excise duty first and than claim the refund under the respective notifications.

Therefore, there was a threat of double refund or misuse of special scheme by availing refund under notification no. 19/2004 as well as in the respective notifications.

To curb the chances of such double refund or misuse of special scheme, central government has inserted conditions no. (h) to the notification 19/2004 that where the units are availing exemption under the following notifications, they shall not be eligible for refund under this notification.  

Notification	Exemption
No. 032/1999 - CE- dated - 08-07-1999	Exemption to North East States from Excise duty to goods cleared from a unit located in the Growth Centre or Integrated Infrastructure Development Centre or Export Promotion Industrial Park or Industries
No. 033/99 - CE- dated - 08-07-1999	Excise Exemption to specified goods of factories in North East (Assam, Tripura, Meghalaya, Mizoram, Manipur, Nagaland or Arunachal Pradesh)
No. 039/2001 - CE- dated - 31-07-2001	5 Year Excise Free Holiday for Units in Kutch District of Gujarat
No. 056/2002 - CE- dated - 14-11-2002	Industrial Growth Centres/Industrial Infrastructure/EP Indl. Parks, etc. Units - Exemption from Excise Duty
No. 057/2002 - CE- dated - 14-11-2002	Jammu & Kashmir Units - Exemption from Excise Duty of Specified Goods
No. 056/2003 - CE- dated - 25-06-2003	Exemption and Utilization of CENVAT credit under the CENVAT Credit Rules, 2002 - Sikkim
No. 071/2003 - CE- dated - 09-09-2003	Exempts the goods in the State of Sikkim
No. 020/2007 - CE- dated - 25-04-2007	Exempts the goods - First Schedule CE Tariff Act, 1985 other than those mentioned in the Annexure and cleared from a unit located in the States of Assam or Tripura or Meghalaya or Mizoram or Manipur or Nagaland or Arunachal Pradesh or Sikkim

Also see:

Chapter no. 26B of Central Excise Manual - EXPORT OF EXCISABLE GOODS - UNDER CLAIM OF REBATE

 

 

 

Rebate of excise duty: conditions bar refunds where units avail specified exemptions, preventing double refund. Rebate and refund of excise duty on exported goods are governed by Notification No. 19/2004 CE(NT), which prescribes procedures and conditions for claiming relief. An exclusionary condition bars refunds under that notification where units are availing specified regional or scheme-specific excise exemptions, thereby rendering those units ineligible to claim rebate under Notification No. 19/2004; see also the Central Excise Manual on export rebate procedures.