TaxTMI 
TaxTMI 
2013 (6) TMI 33
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....Unit, engaged in the manuacture of export of bulk drugs and formulations. The petitioner is a registered manufacturer and it is liable to pay Excise Duty on the bulk drugs and formulations manufactured by it, unless such payment is specifically exempted. 3. It has been further stated that the Government of India has announced various exemptions from the payment of Excise and Customs Duty payable on the raw materials and consumables used in the manufacture of export products, by a 100% Export Oriented Unit. Concessional rate of duty is also granted for the sale of the finished products in the Domestic Tariff Area, on fulfillment of the export obligation. While so, the Government of India had introduced the levy of Service Tax on taxable s....
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....s and input services. Such credit could be used for payment of Excise Duty on other manufactured excisable goods cleared in the Domestic Tariff Area. The rules also provide for the refund of the accumulated credit, subject to the time limit prescribed under the rules. 5. It has been further stated that Rule 18 of the Central Excise Rules, 2002, provides for the grant of rebate of duty paid on excisable goods which are exported and on such duty paid on materials used in the manufacture or processing of such goods, by way of a notification issued by the Central Government. Thus, a manufacturer, as an exporter, can either claim refund of the duties and the Service Tax paid on the inputs and input services used in the manufacture of the expo....
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....31.3.2003, and therefore, the petitioner cannot pay the duty and claim the rebate of duty so paid. However, the rejection of the rebate claim was not on the ground of limitation or on other procedural infirmities. 8. It has been further stated that, on the rejection of the rebate claim application made by the petitioner, under Rule 18 of the Central Excise Rules, 2002, the petitioner had filed an appeal before the third respondent. The third respondent had also held that the goods in question are exempt from the payment of duty, in terms of the Notification No.24/2003-CE, dated 31.3.2003, and therefore, the petitioner cannot choose to pay the duty and claim the rebate thereon. Thereafter, the petitioner had filed a revision application, ....
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....ments could not be considered as duties of excise and therefore, no rebate can be availed, as per Rule 18 of the Central Excise Rules, 2002. 11. It has been further stated that the petitioner can claim refund of the duties and the Service Tax paid on the inputs and input services used in the manufacture of the exported goods, under Rule 5 of the CENVAT Credit Rules, 2004, as unutilized credit, by fulfilling the conditions stipulated therein. However, duty cannot be paid on the final goods exported by utilizing the credit and claim rebate of the duty paid in terms of Section 5A (1-A), since the goods manufactured by the Export Oriented Unit are exempted from payment of duty, in view of the Notification No.24/2003-CE, dated 31.3.2003, and ....
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....port Oriented Unit. It has also been submitted that the exemption notification is to be read as a whole to understand whether the exemption is absolute or not. The department has ignored the proviso to the notification in reaching its conclusion that the exemption is absolute. As per the proviso excise duty exemption is not applicable when the goods are cleared for consumption in India. Hence when excise duty is payable there is no question of the finished goods being exempt from duty. 14. It has been further submitted that the petitioner is a manufacturer of excisable goods and it avails CENVAT credit on the Service Tax paid on the input services. As stated above, no CENVAT credit is available if the finished goods are exempted from dut....
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....ods without payment of duty. It depends on the choice of the manufacturer/exporter to exercise their option, between the two modes. There is no bar, under Rule 18, that 100% Export Oriented Unit cannot export on payment of export duty. Therefore, the rebate claim of the petitioner, under Rule 18 of the Central Excise Rules, 2002, is legal nad valid. 17. At this stage of the hearing of the writ petition the learned counsel appearing on behalf of the petitioner had submitted that it would not be of any use to the petitioner if the respondents are keeping the rebate amount in credit, as the petitioner does not make any local sales and therefore, no excise duty would be payable by the petitioner. Therefore, the second respondent is bound to ....