TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 625
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....t or for home-consumption as stipulated under Rule 57F(13) of Central Excise Rules, 1944? (b) Whether the CESTAT was legally correct in holding that it was mandate on the revenue to allow the manufacturer to utilize the credit of specified duty in respect of inputs towards payment of duty on any final product cleared for home consumption or for export on payment of duty and it was not a mandate on the assessee?" 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The respondent-assessee is engaged in the manufacture and export of primary batteries and cells falling under Chapter heading 8506 of Central Excise Tariff Act, 1985. Refund claims were filed by the assessee under Rule 57F(13) of the Central Excise Rules, 1944 (in short, "the Rules") on the ground that it had exported most of the manufactured goods under bond and had a balance of Modvat credit in RG23A Part II as unutilized. The Deputy Commissioner, Central Excise Division I, Gurgaon vide letter, dated 12-11-1999, Annexure A.1 rejected the claim on the ground that full duty was refundable in case where the goods were cleared on paymen....
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....t and subject to such safeguards, conditions and limitations as regards the class or description of goods, class or description of materials used for manufacture thereof, destination, mode of transport and other allied matters as may be specified in the notification : Provided that if the Commissioner of Central Excise or as the case may be the Maritime Commissioner of Central Excise is satisfied that the goods have in fact been exported, he may, for reasons to be recorded in writing, allow, the whole or any part of the claim for such rebate, even if all or any of the conditions laid down in any notification issued under this rule have not been complied with. (2) Where the Central Government does not grant under Clause (a) of sub-rule (1) either wholly or partially any rebate of duty paid on goods exported to a country outside India, it may, in order to promote exports or fulfil obligations arising out of any treaty entered into between India and the Government of that country, provide, by notification in the Official Gazette, for payment to the Government of that country an amount not exceeding the duty paid on such goo....
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....de of transport and other allied matters as may be specified in the notification which the exporter undertakes to abide by entering into a bond in the proper form with such surety or sufficient security, and under such conditions as the Commissioner approves. (2) The Central Government may, from time to time, by notification in the Official Gazette, permit export of specified excisable goods in bond, without payment of duty from a factory of manufacture or warehouse, to Nepal or Bhutan, subject to such conditions or limitations as regards the class of goods, destination, mode of transport and other matters as may be specified therein. Explanation I. - In this rule, the expression "manufacture" includes the process of blending of any goods or making alterations or any other operation thereon. Explanation II. - In this rule, the term "materials" shall include raw materials, consumables (other than fuel), components, semi-finished goods, assemblies, sub-assemblies, intermediate goods, accessories, parts and packaging materials used in the manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods." "57F.....
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....t of specified duty allowed in respect of inputs used in or in relation to the manufacture of final products which are cleared for export under bond may be allowed subject to the safeguards, conditions and limitations, set out in the Appendix to this notification. APPENDIX 1. The goods are exported in accordance with the procedure specified in Chapter IX of the Central Excise Rules, 1944, as modified, wherever applicable, by Rule 173-0 of the said rules. 2. The claims for such refund are submitted not more than once in any quarter in a calendar year. Provided that, notwithstanding anything stated above, the claims for such refund may be made for the calendar month where the average export clearances of dutiable goods in value terms is seventy per cent or more of the total clearances of dutiable goods in the preceding three months. 3. The manufacturer undertakes to refund to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, on demand being made, within six months of the date of payment, any refund erroneously paid to him. 4. The manufacturer shall prepare an application in Form A below and present to the Assistant Commis....
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....e duty paid thereon. Further, the excise duty can either be paid by making cash deposit in the account current (PLA) or by debiting in the RG23A Part II register (Modvat credit register). Appellant further submits that Rule 13 provides for the export of goods without payment of duty on execution of a bond. Under this provision no excise duty is required to be deposited with the excise authorities at the time of clearance of the finished goods for export. Therefore, according to the appellant, the assessee has a choice of adopting either the procedure under Rule 12 or Rule 13 for clearing its finished goods meant for export. Refund of the Modvat credit accumulated where exports are made under Rule 13 is provided under Rule 57F(13). This rule is applicable only in those circumstances where exports have already taken place under bond. It is contended that during the relevant period all clearances had been made by the appellant on payment of duty from Modvat account. The appellant had not effected any clearance for export on payment of duty. As a result, according to the appellant, Modvat credit on inputs contained in the goods exported was not capable of being utilized within the mean....