Customs, Excise and Gold Tribunal - Ahmedabad
Cce vs Vardhaman Fabrics (P) Ltd. on 27 July, 2007
ORDER M. Veeraiyan, Member (T)
1. This is Department's appeal against the order of the Commissioner (Appeals) No. VP/425/SRT-I/2005 dt.30/8/2005.
2. Heard both sides.
3. The relevant facts, in brief, are as follows:
a. The respondent company was working under compounded levy scheme and paying duty on the basis of APC fixed.
b. By its very nature, once duty is discharged under compound levy scheme, the duty paid by the assessee has no direct correlation to actual clearances made by the assessee. In cases of exports by such assessees, export incentives have been paid in terms of formula prescribed under the Notification No. 31/98(NT) dt.24/8/1998 as amended.
c. There was a dispute about the amount payable under the compounded levy scheme which was decided in favour of the respondent company and they claimed the refund.
d. The Original Authority disallowed part of the refund on the ground that the same was obtained as rebate in respect of goods exported by them.
e. Commissioner (Appeals) allowed the appeal of the party and ordered sanction of refund of Rs. 51,382/- and the Department is in appeal against this issue.
4.1. I have carefully considered the submissions from both sides. It is not disputed that the duty payable under the compounded levy scheme is not linked to the actual production and clearances. Since, in such cases, the export incentives cannot be linked to actual duty paid the Department has chosen to fix a formula and accordingly export incentives are being paid, as prescribed. It has not been shown how the change on the duty paid under the compounded levy scheme affects the rate fixed for export incentives.
4.2. Therefore, the Commissioner (Appeals)'s decision in holding that these two are different aspects and the rebate taken by them does not affect the duty payable under the compounded levy scheme is legally correct and no valid reasons have been adduced to interfere with it.
5. In view of the above, appeal by the Department is dismissed.
(Dictated and Pronounced in Court)