CCE Vs. MAHINDRA AND MAHINDRA LTD.

JUDGEMENT

(1.) ALL the 3 appeals of the Revenue involve common Issues and hence heard together and disposed of by this common order.

(2.) THE brief facts are that the respondents exported tractors on payment of Central Excise Duty under claim for total amount of rebate of Rs. 14,57,182/ -. The claims were rejected on the grounds Inter alia that they had claimed duty draw back and therefore rebate was not admissible in terms of Rule 12(3) of the Central Excise Rules, they had not declared on the AR 4/AR4A that they are availing draw back facility, that there is a discrepancy in the description of goods in the documents and that they have not submitted duplicate copy of AR4 from Customs authorities along with other documents. The Commissioner (Appeals) directed grant of rebate on the ground that admittedly draw back claim was of Customs duty while the rebate claimed covered Central Excise Duty. He held that there was no difference in description of goods. Regarding non production of duplicate copy of AR4, he held that the documents submitted are sufficient for proof of exports and further, it was possible to verify whether sale proceeds had been received, and he therefore, remanded the case for grant of rebate on the basis of the records submitted and for respondents to produce subsidiary proof for verification regarding export of tractors. Hence, these appeals by the Revenue.

(3.) I have heard both sides. There is no dispute that draw back of Customs duty was claimed by the respondents. The question therefore, is only whether the claim for rebate of Excise duty is hit by the grant of draw back of Customs duty. I find that this issue has been settled by the decision of the Tribunal in the case of Shreyaha Batteries v. CCE, Belgaum , In that case, the appellants' plea was that draw back allowed was only in respect of Custom duty and therefore, they could not be precluded from the benefit of the refund in terms of Rule 57F(3) in respect of Central Excise duty paid on inputs. The Tribunal remanded the case to the Commissioner (Appeals) for consideration of the basis on which the draw back rate was fixed and also to find out as to whether Central Excise Duty component has been taken into reckoning while fixing the draw back rate. Paragraph 4 of the Tribunal's order is reproduced below: