AI Drafter 
TaxTMI 
TaxTMI 
2016 (4) TMI 792
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....can, which are all, apparently, indispensable drugs in the treatment of cancer. The petitioner exported such drugs in bulk quantities to foreign buyers and paid excise duty thereon by claiming against the Cenvat credit enjoyed by the petitioner at the relevant time. The petitioner subsequently applied under Rule 18 of the Central Excise Rules, 2002 for rebate of the duty paid. At the lowest level, the petitioner succeeded. The department went up in appeal and the relevant Commissioner reversed the order on the ground that the drugs exported by the petitioner in bulk quantities were exempted from duty and the petitioner ought not to have been paid any duty thereon to claim rebate thereof. It is such order of the appellate authority, which ha....
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....d the 1st March, 2002, (G.S.R. 118(E), dated the 1st March, 2002) (B) Bulk drugs used in the manufacture of the drugs or medicines at (A) above Nil Nil - 2 The petitioner contends that since the petitioner had a licence to manufacture bulk drugs and the petitioner only deals in bulk drugs, the goods exported by the petitioner were covered under the description of clause (B) pertaining to the relevant entry in the table. The petitioner says that since there was a condition attached to the exemption of duty in such case, the petitioner could not have allowed the goods to be removed from the petitioner's manufacturing facility without the payment of duty thereon. The petitioner claims that since the duty could not have been passed on ....
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....014 (300) ELT 481 where a view was taken that notwithstanding Section 5A(1A) of the said Act, when duty had been paid at the time of export, the exporter was entitled to claim a rebate therefor under Rule 18 of the said Rules. However, the court did not consider in that case whether duty paid by an exporter in a case where duty was clearly not payable would entitle the exporter to claim a subsequent rebate and, thereby, encash the Cenvat credit that may have been built up by such exporter. The petitioner has referred to the rule-making authority under Section 37(2)(xvi) of the said Act and to the two limbs of Rule 18 of the said Rules. According to the petitioner, if an exporter has a choice of not paying the duty payable on any excisabl....
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....gs specified in List 3 or List 4 appended to the notification referred to in the description would be exempted from duty. The drugs of the kind that were exported by the petitioner were drugs which were identified in Lists 3 and 4 of the applicable notification. By virtue of the names of such drugs figuring in the lists, they were exempted from duty. Goods under clause (B) of the relevant column pertaining to the applicable entry would be bulk drugs which are used in the manufacture of drugs or medicines or salts or esters covered by clause (A) of the same entry, subject to certificates being issued by the users thereof of such use. In other words, drugs which are already recognized in Lists 3 and 4 have to be regarded as completely exem....
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....the said Act of 1940 and which go into the manufacture of drugs or medicines covered by clause (A) of the description of goods in the relevant entry. It is apposite, in the context, to notice the essence of the revisional authority's order at paragraph 10 thereof: "10. From a plain reading of the above provisions, it is seen that a bulk drug can be used as such or as an ingredient in any formulation. Any bulk drug which features in List 3 or List 4 appended to Notification No. 21/2002-Cus dated 17.03.2002 will be exempted unconditionally. However, any other bulk drug if used further in manufacture of any drugs or medicines listed in List 3 or List 4 is exempted only subject to fulfillment of prescribed condition." There is no doubt....