GRASIM INDUSTRIES LTD Vs. UOI

JUDGEMENT

(1.) CM 7824/2010 Allowed subject to all just exceptions. WP(C) 3899/2010 & CM 7823/2010 This writ petition is directed against the order dated 01.12.2009 issued by the Joint Secretary, Government of India under Section 35EE of the Central Excise Act, 1944 (hereinafter referred to as "the said Act"). The petitioner had claimed rebate in respect of central excise duty paid on raw materials as well as in respect of central excise duty paid on the final products. The petitioner's claim in respect of the rebate qua final products has been allowed by the authorities below. However, the rebate in respect of duty paid on raw materials has been disallowed. It is because of this that the petitioner is before us by way of this writ petition.

(2.) The petitioner manufactures man-made fabrics as well as polyester/ viscose blended yarn falling under Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985. For the purposes of manufacturing the said final products, the petitioner employs duty paid inputs as well as other inputs. The duty paid inputs include polyester staple and viscose staple fibre as well as other packing materials and consumables. The products manufactured by the petitioner are cleared for home consumption as well as for exports. In this petition, we are only concerned with the products which are exported on payment of duty under claim of rebate. The petitioner had filed as many as 15 rebate claims covering the period from 2005 to 2006. As aforesaid, the rebate claims were allowed in part inasmuch as the rebate claims qua the duty paid on final products were allowed. The rebate claims which were denied amounted to Rs 26,11,788/- being the aggregated disallowance in respect of all the 15 claims.

(3.) Rule 18 of the Central Excise Rules, 2002 (hereinafter referred to as "the said Rules") reads as under :-