2007 (4) TMI 539

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....]. -  This is an appeal against the order of Commissioner (Appeals) No. VP/254/SRT-I/2005, dt. 20-06-05, upholding the order of original authority No. SRT-III/ADJ/DEM/17/04-05, dt. 20-10-04. 2. Heard both sides. 3. The relevant facts, in brief, are as follows : (a)     The rate of duty on man-made fabrics, falling under Chapter heading 5406.22 of CETA, 1985 w....

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....mestic market and some consignments for export through merchant exporters paying 12% of duty and took applicable credit. (f)      When it was cleared to merchant exporter, the duty paid was higher at Rs. 12,000/- and they became eligible for higher rebate as merchant exporter. The original authority held that by paying excess rate of 12%, appellant enabled the merchant ex....

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.... of clearances made to domestic market as in such cases the net duty paid @ 12% after adjusting the deemed credit is effectively more than what is payable net @ 10%. In respect of clearances made to the merchant exporters, whatever duty was paid by them was eligible as rebate. Hence, it is only a revenue neutral exercise. 3. The learned DR submits that there is no dispute the duty payable fo....

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....e neutral exercise. This is not factually correct. 5. For example, the gross duty payable at 12% on a consignment valued at Rs. 1 lakh was Rs. 12,000/-, with credit available being Rs. 8,000/- and with the balance of Rs. 4,000/- payable from PLA or by cash. When the consignment gets exported, the net outflow from the Deptt. is Rs. 4,000/- as rebate. At the rate of 10%, the gross duty payable....