By TIOL News Service

AHMEDABAD, MAY 06, 2013: THE appellant is a manufacturer in Kutch availing the Area based exemption under Notification No.39/2001 dated 31.7.2001. The dispute in the instant case is whether the amendment made on 17.09.2007 to Notification No 19/2004 to disallow rebate on goods manufactured under area based exemptions is applicable for goods cleared before 17.09.2007, but exported after the amendment. The appellant contended before the High Court that once the goods were cleared for export from the factory of the petitioner, right to claim rebate accrued. Such accrued right cannot be affected by any subsequent change in the Exemption scheme. The amendment Notification dated 17.9.2007 would not adversely affect the petitioner's claim of rebate on goods manufactured and cleared from the factory for export before such date.

After hearing both sides, the High Court held:

The claim for rebate under Exemption Notification No.19/2004 would accrue upon actual export of goods. Mere clearance of the goods for export from the factory premises would not be sufficient. Fulfillment of such a condition is necessary but not sufficient for exporter to claim rebate. Therefore, on all the exports made by the petitioner after 17.9.2007, the petitioner had no accrued right to claim rebate on the basis of unamended notification on the basis of clearance of goods from the factory. Mere fact that such goods were cleared from the factory premises for export before such date, would not give rise to an indefeasible claim of rebate. When by amendment in the Exemption Notification No.19/2004 an additional clause (h) to paragraph 2 was added and an additional condition was introduced, such amended notification would apply to all exports made after 17.9.2007. Such condition reads as under:

“(h) that in case of export of goods which are manufactured by a manufacturer availing the notifications of the Government of India in the Ministry of Finance (Department of Revenue) No.32/99-Central Excise, dated 8th July, 1999 [G.S.R.508(E), dated the 8th July, 1999] or No.33/99-Central Excise, dated 8th July, 1999[G.S.R.509(E), dated the 8th July, 1999] or No.39/99-Central Excise, dated the 31st July, 2001 [G.S.R.565(E), dated the 31st July, 2001] or notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs (Department of Revenue) No.56/2002-Central Excise, dated the 14th November, 2002 [GSR 765(E), dated the 14th November, 2002] or notification of the Government of India in the Ministry of Finance (Department of Revenue) No.56/2003- Central Excise, dated 25th June, 2003 [G.S.R.513(E) dated 25th June, 2003] or 71/2003- Central Excise dated the 9th September, 2003] [G.S.R.717(E) dated the 9th September, 2003] or No.20/2007-Central Excise, dated the 25th April, 2007 [G.S.R.307(E), dated the 25th April, 2007], the rebate shall not be admissible under this notification.”

It is undisputed that the petitioner is covered by such condition since the petitioner claims benefit of Exemption Notification No.39 of 2001. In that view of the matter, in our opinion, the Appellate as well as Revisional Authorities committed no error.

(See 2013-TIOL-357-HC-AHM-CX)