NAHAR INDUSTRIAL ENTERPRISES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This order shall dispose of CWP Nos. 2235 and 3358 of 2007 as common questions of law and facts are involved therein. For the sake convenience, facts are being extracted from CWP No. 2235 of 2007.

(2.) The petitioner is engaged in the manufacture and export of cotton yarn and woven fabrics, both for domestic market as well as for export and the excise duty leviable thereon was 16%. By a Notification No. 29/2004-C.E., dated 9-7-2004 the petitioner was granted relief in the excise duty payable in so much as the same was limited to 4%. By another notification of the same date Bearing No. 30/2004-C.E., the petitioner was granted total exemption from payment of duty on the products manufactured by it, subject to the condition that no credit is taken on the inputs consumed in the manufacture of the final product.

(3.) However, as regards the goods exported, the petitioner did not take benefit of the above mentioned exemption notifications and paid duty @ 16% through actual credit/deemed credit account. Rule 18 of the Central Excise Rules, 2002 empowers the government to grant rebate on exported goods and is quoted herein below :-