By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
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The claim of rebate be allowed even if duty-paid goods are not exported ‘directly’ from the factory/ warehouse, provided documentary evidence establishing direct co-relation between duty-paid goods manufactured/cleared by assessee and those exported by assessee is placed on record.
Facts:
The Assessee – a manufacturer from Gujarat, filed different rebate claims in terms of Rule 18 of the Central Excise Rules, 2002 and Notification No.19/2004 dated 06-09-2004. Rebate claims were granted as such claims were found allowable. The department filed appeal before the Appellate Commissioner, which was rejected. Aggrieved by the order, the department preferred writ before the High Court.
The primary objection of the department for not allowing claim was that, manufacturer had breached condition 2(a) of the Notification dated 06-09-2004, by not directly exporting the goods from factory or warehouse at Gujarat, but first by supplying the same to a trader exporter and thereafter, exporting from Maharashtra.
Held:
The High Court observed that the revenue authorities as well as the revisional authority have concurrently come to the conclusion that there was a direct corelation between goods manufactured in the factory with the goods exported and when such fact was established through reliable, undisputed and contemporaneous documentary evidence, there was no infirmity in granting refund.
