- (1.) These appeals under Section 35-L of the Central Excises and Salt Act, 1944 are filed against the orders of thecustoms, Excise and Gold (Control) Appellate tribunal, New Delhi (CEGAT) in Order Nos. 10 to 55/84-B dated Ja 5/01/1984. The appellants at all material times were carrying on business as re-rollers of iron a and steel products. They purchased billets from the stockyard of hindustan Steel Ltd. , M/s Tata Iron and Steel Co. Ltd. , and Indian Iron and steel Co. Ltd. at Calcutta now known as Steel Authority of India Limited and either rolled these billets or got them rolled by other re-rollers into m. S. Flats (Hoops) and exported them on payment of proper central excise duty. The steel billets fall under Item 26-AA (i) and flats fall under item 26-AA (iii) of the First Schedule to the central Excises and Salt Act, 1944. At all the relevant times it is stated that the concessional rate of duty levied on billets was Rs. 330. 00 per metric ton and on flats Rs. 120. 00 per metric ton. The appellants had exported M. S. Flats (Hoops) of a total quantity of 1168.750 metric tons on various dates. As and when they exported the said flats they filed applications for rebate of duty on the goods so exported claiming a total rebate at the rate of Rs. 450. 00 per metric ton of flats exported on the ground that they are eligible for the full rebate of excise duty at the rate of Rs. 330. 00 per M. T. paid on the billets as also the duty of Rs. 120. 00 per M. T. paid on the flats exported. Twenty-five of such claims of the appellants for a total amount of Rs. 2,86,096.50 were sanctioned. On the ground that they had been given excessive rebates and that they are not entitled to the rebate of duty of Rs. 330. 00 per metric ton paid on the billets or that it was inadmissible, 25 show-cause notices were issued demanding the repayment of the amount calculated at rs 330 per metric ton equivalent to the duty on billets. In respect of the remaining 21 claims, notices were issued as to why their claims to the extent of Rs. 330. 00 per metric ton should not be disallowed. After hearing the appellants the Collector passed the orders demanding the return of the excess amount involved in the 25 show-cause notices and reducing the claim for rebate in the remaining 21 cases and restricting the rebate to the sum of Rs. 120. 00 per metric ton paid on M. S. Flats when the goods were cleared from the factories. On rejection of the appeals preferred against these orders by the central Board of Excise and Customs the appellants preferred appeals to CEGAT. After a consideration of the relevant notifications allowing rebate and the arguments of the appellants, the tribunal held that rebate is admissible only in respect of the central excise duty paid on the finished products and not on the raw material going into the manufacture of finished products and that therefore the claim has got to be restricted to the actual amount of duty paid at the time of clearance of the finished products from the factory for export. It may however be mentioned that the tribunal also expressed a view that the appellants had not factually proved the payment of excise. duty on the billets purchased by them. Proof of payment was considered particularly in view of the fact that the duty on iron and steel products were being changed or altered or modified very frequently.
(2.) In these appeals Mr Chandrashakharan, the learned senior counsel appearing for the appellants contended that the rebate of duty paid on the "excisable goods" on the exportation out of India is admissible to the extent and subject to the conditions mentioned in Notification No. 197 of 1962 dated 17/11/1962. Though excise duty at the rate of Rs. 120. 00 per metric ton on M. S. Flats was paid at the time of the clearance from the factory the effective rate of duty on the goods exported was Rs. 450. 00 per metric ton as duty at the rate of Rs. 330. 00 per metric ton had been paid on the billets at the time of actual clearance of the billets from the producing factories. He further contended since the billets which went into the manufacture of finished goods exported have been purchased from the major steel plants, above referred to, excise duty shall be deemed to have been paid. He also contended that the appellants produced the invoices showing the payment of central excise duty on the billets at the appropriate rate before the Collector but the Collector wrongly refused these documents and also wrongly held that they do not establish payment of duty.
(3.) Rule 12 of the central Excise Rules, 1944 provides that "the Central government may, from time to time, by notification in the Official gazette, grant rebate of duty paid on excisable goods, if exported outside india, to such extent, and subject to such safeguards, conditions and limitations as regards the class of goods, destination, mode of transport, and other allied matters as may be specified therein. . " In exercise of this power Notification No. 197 of 1962 dated 17/11/1962 was published. The relevant portion of the Notification is extracted below: "Procedure for grant of rebate of the excise duty paid on excisable goods and exported out of India. In exercise of the powers conferred by Rule 12 of the central Excise Rules, 1944, as in force in India and as applied to the State of Pondicherry, the central government is pleased to direct that, in supersession of the Notifications of the government of India in the Ministry of Finance (Department of revenue) No. 10 central Excises, dated 5/04/1949, No. 45 Central Excises, dated 5/04/1949 and No. 47/54, central Excises, dated 1/11/1954, rebate of the duty paid on the excisable goods specified in the Table annexed hereto shall, on their exportation out of India, or the State of Pondicherry, as the case may be, to the destinations mentioned in column 3 thereof, be made to the extent and subject to the conditions and limitations, if any, set out in the corresponding entries in columns 4 and 5: Provided that- (I) except as otherwise provided in the said Table or permitted by the central Board of Revenue by general or special order, the goods are exported after payment of duty in cash direct from a factory or a warehouse; (Ii) * * * (Iii) the amount of duty paid on the goods to be exported and the date of payment thereof, are established, from Central excise records, to the satisfaction of the Collector. . ""table;