TaxTMI 
TaxTMI 
2011 (9) TMI 901
X X X X Extracts X X X X
X X X X Extracts X X X X
....DA is the respondent in this case. 2. Brief facts of the case are that M/s. Polyplex Corporation Ltd., are engaged in the manufacture of Polyester Film. The applicant filed rebate claims in the office of the Assistant/Deputy Commissioner, Central Excise, Division- Rampur under Rule 18 of the Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 in respect of Central Excise duty paid on export goods. The rebate claims were initially sanctioned by the competent authority, which were thereafter sent for Post Audit to Central Excise, Head Quarters, Meerut-II. On scrutiny of the said rebate claims, the Audit Branch observed that the post facto verification of export was required in the rebate claims ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... foreign exchange. It even failed to appreciate implication of para 6 of sanction letter of ECGC 'that payment of this claim in Indian Rupees does not absolve the applicant, as an exporter of their obligation to RBI, Exchange Control Department in terms of GR form.' 4.2 Export of goods and services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the FEMA, 1999. Regulation 3 of FEM (Goods and Services) Regulations, 2000 requires that a declaration in form GR/SDF is to be submitted to the Customs, inter alia, affirming that the full export value of the goods or software has been or will within the specified period (normally 6 months under Regulation 9, ibid) be paid in specified mann....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cation No. 19/2004-C.E. (N.T.), which has been issued under Rule 18 of Central Excise Rules, 2002, does not talk of submission of BRC by any exporter while claiming rebate of duty paid on exports under Rule 18, either before or after sanction of rebate. 6.2 Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 lays down the terms and conditions and procedure to be followed by the manufacturer-exporter who wish to export the excisable goods on payment of duty with rebate claim procedure. The respondent submits that they have followed the terms and conditions and the procedure of Notification No. 19/2004-C.E. (N.T.) in letter and spirit. It is nowhere specified in the said Notification that export proceeds should be realized within a p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the document required for grant of excise duty rebate under Rule 18 of Central Excise Rules, 2002, the Commissioner (Appeals) has correctly held that export proceeds were realized by the respondent from ECGC through whom the exports were insured. The overseas buyer to whom the goods were exported had gone into liquidation and due to this reason beyond the control of the respondent, the respondent could not realize the export proceeds from the foreign buyer. Since, the exports were ensured through ECGC against premium, on liquidation of the buyer, the respondent filed its claim before the ECGC against their policy premium. The ECGC vide their letter dated 21-9-2006 settled the claim of the respondent in respect of shipments to the foreign bu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....espondent. 9. Government observes that in the instant case the foreign buyer went into liquidation and hence could not repatriate foreign exchange to the respondent. However, the respondents were insured for their exported goods by Export Credit Guarantee Corporation (ECGC) who settled their claim in Indian Rupees. The respondents argued that in terms of para 2.25.2 of Handbook of Procedure (Vol-I) of Foreign Trade Policy (FTP), 2004-09, the amount of insurance cover paid on account of insurance cover has to be treated as payment on account of exports under the various export promotion schemes. Government notes that the said RBI Circular No. 9/2008-09, specifically clarifies that claims settled in Indian Rupees by ECGC and Private I....