TaxTMI 
TaxTMI 
2009 (11) TMI 672
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....kwadi, Tal. Shirol, Ichalkaranji are engaged in the manufacture of Cotton Yarn falling under Chapter sub heading No. 5205.11 and 5205.19 of the Schedule to the Central Excise Tariff Act, 1985. 2.2 The assessee having status of 100% EOU unit applied for de-bonding of the unit with development Commissioner SEEPZ, Mumbai, vide their letter dated 20-10-2003. 2.3 The Development Commissioner vide Letter No. SEEPZ : SEZ : EOU : DEBONDING : 2002/6083, dated 27-11-2003 allowed de-bonding "in-principle" with terms and conditions of de-bonding. The assessee paid Central Excise Duty of Rs. 31,10,410/- on 23-1-2004 in respect of capital goods, as per terms of the Development Commissioner and thereafter the final debonding order was issu....
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....order of the adjudicating authority and held the rebate claim as admissible. 3. Being aggrieved by this order-in-appeal, the Commissioner has filed this revision application on the following grounds : 100% EOUs are governed by different sets of provisions under Central Excise Act, 1944, Central Excise Rules and Customs Act. Also separate Notification under Central Excise Act and Customs Act have been issued to govern all activities carried out by 100% EOU. Rule 17 of Central Excise Rules, 1944 states provision for removal of goods by 100% EOU and how a 100% EOU can avail Cenvat Credit and utilize the same for clearance in DTA, likewise for discharge of duty separate charging provision under Section 3 is laid down, and under Rule ....
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.... given the option of paying the 4% Basic Excise Duty on the cotton yarn. 4.3 Accordingly, since our customers in India wanted the cotton yarn from us without payment of duty, we after July, 2004 are selling the cotton yarn manufactured by us to the customers in India without payment of duty claiming exemption under Notification No. 30/2004-C.E., dated 9-7-2004. However, we are exporting our cotton yarn on payment of 4% Basic excise duty (the rate prescribed under Notification No. 29/2004-C.E., dated 9-7-2004. under claim of rebate following the procedure prescribed under Rule of the Central Excise Rules, 2002. 4.4 Accordingly, we cleared 19958.40 kgs. of cotton yarn for export on payment of Central Excise duty of Rs. 75,280/....
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....bject to the condition that no CENVAT credit of duty paid on the inputs used in or in relation to the manufacture of the said yarn is availed. The C.B.E. & C. vide its Circular No. 795/28/2004-CX., dated 28-7-2004 and No. 845/3/2007-CX., dated 1-2-2007 has also clarified that the benefit of above said two notifications can be enjoyed simultaneously and there is no compulsion on the yarn manufacturer to enjoy only one of the above said two Notifications. The Hon'ble Tribunal in the case of Forbes Gokak Mills Ltd. v. C.C.E. - 2006 (77) RLT 626 = 2007 (208) E.L.T. 521 (Tri.) = 2008 (10) S.T.R. 540 (Tri.) also has laid down the same ratio. Further, in view of the Hon'ble Tribunal's decision in the cases of Hindustan Lever Ltd. v. C.C.E. - 1989 ....
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....paid on the exported goods is held admissible under Rule 18 of the Central Excise Rules, 2002. 4.9 We submit that, there are various decisions where under it has laid down that once the duty is paid on the goods cleared for export and there is not dispute about the fact that the said goods are actually exported, the rebate of the duty paid on the said exported goods is bound to be allowed. Even in the case of Balkrishna Industries Ltd. v. C.C.E. - 2007 (78) RLT 358, it is clearly laid down that whether duty on the goods cleared for export is paid correctly or wrongly, the rebate of the said duty is bound to be granted when there is no dispute about the fact that the goods are actually exported. In our case, there is no dispute about....