2017 (11) TMI 1778

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....ed 18-7-2012, issued by Commissioner, Food Safety Department, Rajasthan, prohibited the production, storage, distribution and sale of Gutkha, pan masala and food items containing tobacco and nicotine in the State of Rajasthan. But the applicant still continued to clear the Gutkha for export from their factory even after this ban by Rajasthan Government. The applicant claimed rebate of duty against the exported Gutkha and the same was rejected by the Assistant Commissioner of the concerned Division. The applicant filed an appeal before Commissioner (Appeals) against the order of the Assistant Commissioner who has also rejected the appeal of the applicant vide his above-quoted order dated 30-9-2013. Being aggrieved, the applicant has filed th....

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....hat even if consignments of Gutkha were cleared for exporting thereof during the said period, these consignments certainly involved sale, transportation and storage in Rajasthan until these were exported. Thus, the scope of this order is wide enough to cover even export of goods from the territory of State of Rajasthan as it invariably involved all activities prohibited under the above Notification. 5. One of the conditions for allowing rebate of duty on excisable goods under Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 read with Notification No. 32/2008-C.E. (N.T.), dated 28-8-2008 is that export of goods should not be prohibited under any law for the time being in force. Since the export of Gutkha from 18-7-2012 involving ....

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....ct of the exported Gutkha, its rebate of duty cannot be refused under Rule 18 of Central Excise Rules, 2002. However, this argument is not found legally and factually tenable for two reasons. First, the duty of excise on exported Gutkha was paid by the applicant in advance much before its production etc. was banned by the Government of Rajasthan under compounded levy scheme and secondly payment of duty on manufacture of goods and rebate of duty are two different things. Rebate of duty is admissible as per conditions and procedure specified under Notification No. 32/2008, read with Notification No. 19/2004, dated 6-9-2004, and thus it is not necessary that wherever duty of excise is paid on manufactured goods, rebate of duty is always admiss....