Page 234 - ELT_15th August 2020_Vol 373_Part 4

568 EXCISE LAW TIMES [ Vol. 373

notification. It is observed that the applicant removed the scrap generated during
the manufacture of the export goods on payment of duty. The Notification fur-
ther provides for the verification of input-output ratio by the jurisdictional Excise
authorities. In the instant case, the required verification of the input-output has
also been done and due permission was granted by the Excise authorities to
manufacture and export the finished goods.
9. The notification nowhere specifies that the entire quantum of duty
paid inputs have to be physically contained in the export goods to be eligible for
rebate. As per the notification, material should be used in manufacture or pro-
cessing of export goods and the waste should be cleared on payment of duty.
10. Reliance of the adjudicating authority on C.B.E. & C. Circular No.
129/40/95-CX., dated 29-5-1995 pertaining to the erstwhile Central Excise Rules,
1944 is farfetched since these rules have been subsequently replaced by Central
Excise Rules, 2002. Moreover, this circular pertains to Notification No. 42/94-C.E.
(N.T.), dated 22-9-1994 and cannot be made applicable to Notification No.
21/2004-C.E. (N.T.), dated 6-9-2004 issued under the Central Excise Rules, 2002.
11. It is further observed that Commissioner (Appeals), Jaipur and
Udaipur have given relief to the applicant on this issue vide Orders-in-Appeals
Nos. 19-20(SJ) CE/JDR/2018, dated 25-1-2018 and 253(CKJ)ST/UDR/2018, dated
5-6-2018, in respect of the subsequent claims.
12. In view of the above, orders-in-appeal are set aside and revision
applications are allowed. Accordingly, the applicant may file the rebate claims
with the erstwhile Central Excise authorities having jurisdiction over M/s.
Shivagrico Implements Ltd., Falna, Rajasthan, who may decide the rebate claims
on merits as per law.
_______

2020 (373) E.L.T. 568 (G.O.I.)
BEFORE THE GOVERNMENT OF INDIA, MINISTRY OF FINANCE
[Department of Revenue - Revisionary Authority]
Ms. Mallika Arya, Additional Secretary
IN RE : SOMSON EXPORTS
Order No. 188/2019-CX, dated 17-12-2019 in F.No. 195/43/2018-RA
Penalty - Deficiency in export document - Omission to mention Cen-
tral Excise Tariff Heading of export goods on documents - HELD : Assessee
mentioned description of export goods as “Pump Set 10 H.P. (I.C. Engine with
Centrifugal Pump)” in ER-1 Returns - Said goods merit classification under
Tariff Item 8413 70 10 of Schedule to Central Excise Tariff - However, assessee
paid higher rate of duty (8% and 10%) applicable to goods falling under Tariff
Item 8408 90 90 ibid with description “Diesel Engine with Centrifugal Pumps”
- Assessee wilfully omitted classification of export goods on Excise invoices
and ARE-1s and chose to pay higher rate of duty from Cenvat account so as to
encash available Cenvat credit by way of rebate under Rule 18 of Central Ex-
cise Rules, 2002 - Lower Authorities correctly imposed penalty under Section
EXCISE LAW TIMES  15th August 2020  234