LAWS(BOM)-2011-4-53

UNION OF INDIA Vs. SHARP MENTHOL INDIA LTD

Decided On April 06, 2011
UNION OF INDIA Appellant
V/S
SHARP MENTHOL INDIA LTD Respondents

JUDGEMENT

(1.) This petition is filed by the Commissioner of Central Excise, Raigad to challenge the order passed by the Joint Secretary to the Government of India on 21/1/2011 whereby the stay application filed by the Commissioner of Central Excise seeking stay of the order passed by the Commissioner of Central Excise (A. on 14/9/2010 till the disposal of the Revision Application, has been rejected. By order dated 14/9/2010, the Commissioner of Central Excise (A. had held that the respondent No.1 ('the assessee' for short. is entitled to claim rebate of duty paid on export of peppermint oil by debiting the credit of duty paid on inputs used in the manufacture of final products. In the Writ Petition No.8068 of 2010 filed by the assessee seeking implementation of the order of Commissioner (A. dated 14/9/2010, this Court directed the Commissioner to deposit the rebate claim allowed by the Commissioner (A. and accordingly, the Commissioner has deposited in this Court Rs. 38,03,89,634/- towards the rebate claim.

(2.) Although the Commissioner is aggrieved by the order of the revisional authority in declining to stay the order of the Commissioner (A. till the revision application is heard finally, counsel on both sides urged before us that the matter be heard on merits. Accordingly, counsel on both sides have been heard extensively on the question as to whether on merits the assessee is entitled to claim rebate of duty paid on peppermint oil by adjusting the input credit availed on the inputs used in the manufacture of menthol crystals / peppermint oil.

(3.) The relevant facts are that the assessee is engaged in the manufacture and export of menthol crystals BP/USP and flavouring materials such as peppermint oil by using menthol (liquid. / dementholised oil as the raw materials. The assessee has its manufacturing units at several places including units at New Delhi, Rajasthan, etc.