TaxTMI 
TaxTMI 
2022 (2) TMI 558
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....etition No.2835/2021 is treated as a lead case. Facts on record from the said case may be seen. The petitioner is a limited company and is engaged in the business of manufacturing of automobile tyres and tubes falling under Chapter 40 of First Schedule to the Central Excise Tariff Act, 1985. For the purpose of manufacturing tyres the petitioner would utilise indigenous as well as imported raw materials. In order to avail the benefits of duty free imports the petitioner had obtained advance authorisations and imported goods without payment of duty in terms of notification dated 11.09.2009. For certain locally procured inputs the petitioner would apply and obtain invalidation letters from the Directorate General of Foreign Trade by getting th....
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....ly to encash the CENVAT credit which may have been built up in the account. The advance licence scheme does not allow such mischief. 5. The petitioner preferred revision petition against the said appellate order. The revisional authority by the impugned order dated 08.01.2020 dismissed the revision petition making following observations:- "10. The applicant has paid an amount as central excise duty on the export goods from their cenvat account. The said amount does not assume the character of duty as defined under Rule 2 (e) of Central Excise Rules 2002 wherein 'duty' means "the duty payable under Section 4 of the Central Excise Act". 11. CBIC vide circular no.203/ 37/96-cx dated 26.04.96 has stated that AR-4 (now ARE-1) value....
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....s assumed that no duty was payable, the department cannot retain the petitioner's duty which has already been paid. She drew our attention to the decisions of various courts holding that payment of duty through CENVAT credit is as good as duty paid. The CENVAT rules make no distinction between a case where duty is paid through cash or through CENVAT credit adjustments. She therefore submitted that appellate and revisional authorities have committed serious error in rejecting the rebate claim. 7. Learned counsel appearing for department opposed the petitions contending that it is indisputable that petitioner was not required to pay duty on the exports made despite which the duty was paid. This was done through encashment of CENVAT credi....
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....aterial for manufacturing export goods. Neither of these rules relate to an amount which is deposited with the Government but which is not in the nature of duty. In other words if there is no duty element involved and amount is still paid, it does not partake the character of duty. It may amount to depositing a certain sum with the Government under erroneous belief. Had the petitioner deposited such sum believing it to be the duty payable, we would have still considered directing the Government of India to refund the same. The Government of India has no authority to retain the sum which is collected without authority of law. If a person deposits such sum under mistake he may also claim refund thereof and if Government of India intends to wi....