SC rules in favour of exporters in refund dispute

16 Apr '16

2 min read

The Supreme Court has clarified that an exporter is eligible for refund on duty paid on inputs as well as duty paid on final product cleared from factory on payment of duty for exported final products under Rule 18 of the Excise Rules, according to media reports.

The ruling came while the Supreme Court of India recently dismissed the Review Petition filed by the Department of Revenue against the judgement of the apex court in the case of a textile company Spentex Industries Limited. The company argued that exporters are entitled to both the rebates i.e. amount of duty paid on inputs used in the manufacturing of exported goods as well as the amount of duty paid on exported final goods, under Rule 18 of the Central Excise Rules, 2002 (“the Excise Rules”).

“...We have carefully gone through the review petitions and the connected papers. We find no error, much less apparent, in the judgment impugned. The review petitions are, accordingly, dismissed,” the Supreme Court said.

Rule 18 of the Excise Rules states that “Where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfilment of such procedure, as may be specified in the notification.” (SH)

Fibre2Fashion News Desk – India

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