RAJASTHAN TEXTILE MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petitions have been preferred questioning the legality of orders passed by the Government of India, Ministry of Finance (Department of Revenue) in the revision applications filed by the petitioner as against the orders passed by Commissioner (Appeals-I) of the Customs & Central Excise, Jaipur. Question raised in the petitions is that under Rule 18 of the Central Excise Rules, 2002 (hereinafter referred to as 'the Rules of 2002'), rebate of duty paid on excisable goods or duty paid on materials used in the manufacture or processing of such goods is available on both i.e. excisable goods and raw material simultaneously. Thus, the word "or" used in Rule 18 should be read as "and".

(2.) Since the issue involved in all the petitions is identical, they are being decided by this common order.

(3.) Facts in short are that the petitioner is engaged in the manufacture of M.M. Yarn falling under Chapter 55 of the First Schedule to the Central Excise Tariff Act, 1985 (in short, 'the Act of 1985'). Petitioner had filed various rebate claims under Rule 18 of the Rules of 2002 on the ground that it had used duty paid inputs in the manufacture of M.M. Yarn which was cleared for export on payment of duty; hence, the duty paid by it on inputs as well as finished goods is sought to be refunded under Rule 18 of the Rules of 2002 read with Section 118(2)(a) of the Central Excise Act, 1944 (in short, 'the Act of 1944'). The petitioner had also filed requisite combined declaration, as per Notification No. 21/2004-Central Excise (N.T.). The adjudicating authority rejected the rebate claims on the ground that Rule 18 of the Rules of 2002 does not permit grant of rebate of duty paid on exported finished goods simultaneously with the rebate of duty paid on inputs. Appeals preferred against the said orders were rejected by the Commissioner (Appeals-I), Customs & Central Excise, Jaipur and the orders were affirmed. Aggrieved thereby, revision applications were filed before the dismissal. Hence, the writ petitions have been preferred.