UNION OF INDIA Vs. SHEETAL EXPORTS

JUDGEMENT

(1.) This petition by the Union of India under Article 226 of the Constitution, is to challenge an order passed by the revisional authority in exercise of jurisdiction under Section 35EE of the Central Excise Act, 1944. The Assistant Commissioner had initially rejected rebate claims preferred by the First Respondent in the amount of Rs. 13.57 lakhs. In appeal, the Commissioner remanded the proceedings back to the adjudicating authority for reconsideration, after complying with the principles of natural justice. The First Respondent challenged that order of remand before the revisional authority. By the order impugned in these proceedings, the revisional authority has come to the conclusion that the First Respondent is entitled to claim rebate. The revisional application has been allowed. The Union of India has impugned that order.

(2.) The First Respondent is a merchant exporter. The manufacturer of the goods in question was Radha Dyeing and Printing Mills. The manufacturer claimed Cenvat Credit in respect of duty paid inputs alleged to have been purchased by the manufacturer from an input supplier. The First Respondent purchased finished goods from the manufacturer which in turn were exported by the First Respondent. As against that export, the First Respondent claimed a rebate of central excise duty.

(3.) Rule 18 of the Central Excise Rules, 2002 provides that where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification. The First Respondent claimed rebate on the basis that it had exported goods and the rebate was in respect of duty alleged to have been paid by Radha Dyeing and Printing Mills.