UNION OF INDIA Vs. FARHEEN TEXTURISERS

JUDGEMENT

(1.) Heard learned Advocate for the petitioner and the learned counsel for the respondent. Perused Writ Petition. This Writ Petition filed under Article 226 of the Constitution of India is directed against the order dated 22-1-2007 passed by the Joint Secretary to Government of India (Appellate Authority) under Section 35EE of the Central Excise Act, 1944 (the Act) confirming the Order-in-Appeal dated 21-6-2006, passed by Commissioner of Central Excise (Appeals) Mumbai, whereby and whereunder, the Order-in-Original dated 17th March, 2006 passed by the Assistant Commissioner (Rebate), Central Excise, Raigad was set aside.

(2.) Factual matrix reveals that the Respondent No. 1 preferred two Rebate Claims involving an amount of Rs. 17.55 lacs for the goods exported by them from the Port at Nhava Sheva. The said Rebate Claims were rejected by an order dated 17-3-2006 by the Assistant Commissioner (Rebate) Central Excise, Raigad holding that the reversed of Cenvat credit cannot be treated as payment of duty eligible for rebate and that the subject machinery was not exported from the factory/warehouse of the manufacturer. It was further held that since the machinery had been in use for 7 years from the date of purchase, from 17-10-1997 the said rebate claim was not admissible against export of the capital goods which were used. It was further held that ARE-1 was not signed by the manufacturer of the said machinery and that it was barred by limitation.

(3.) Aggrieved with the aforesaid Order-in-Original, dated 17-3-2006, the respondent No. 1 preferred an appeal before the Commissioner (Appeals) which was allowed by the Commissioner (Appeals) vide its order dated 21-6-2006, with consequential reliefs.