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"6. Government has considered both oral and written submissions of the applicant and also perused the orders passed by the lower authorities and case laws cited by the applicant.

7. Government observes that the issue to be decided is whether the Countervailing Duty (CVD) (Additional duty) leviable under Section 3 of the Customs Tariff Act, 1985 equivalent to the duty of excise paid on the imported inputs/materials used in the manufacture of exported goods is rebatable under Rule 18 of Central Excise Rules, 2002 read with Notification No.21/2004-CE(NT) dated 06.09.04.

11. Government has issued two notifications under Rule 18 of the Central excise Rules, 2002 for claiming rebate of duty on export of goods. Notification 19/2004-CE is for claiming rebate of duty paid on finished goods and Notification No.21/2004-CE(NT) is for claiming rebate of duty paid on inputs/materials on goods used in manufacture/processing of export goods. Both the Notifications are issued prescribing the procedure for clearance of the exported goods under claim of rebate. Govt. further observes that the exporter has the option to export the goods under Rule 18 under claim of rebate, or under Rule 19 of the Central Excise Rules, 2002 under Bond or undertaking without payment of duty. The purpose of both the schemes is the same that is to relieve the duties paid on the exported goods to make these competitive in International market to earn foreign exchange.

Explanation (A) of Section 11B of the Central Excise Act, 1944 has further clarified the issue "refund" includes rebate of duty of excise on excisable goods out of the India or on excisable material used in the manufacture of goods which are exported out of India. Section 3 (1) of the Central Excise Act, 1944 provides for levying and collection of duty of excise/special duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable goods which are produced or manufactured in India and at the rates set forth in the First and Second Schedules to the Central Excise Tariff Act, 1985. The proviso to this Section has further added that the duties of excise which shall be levied and collected on any excisable goods which are produced or manufactured by a 100% export oriented undertaking shall be an amount equal to the aggregate of the duties of the customs which would be leviable under the Customs Act, 1962 on like goods produced or manufactured outside India if imported into India and where the said duties of customs are chargeable by reference to their value, the value of such excisable goods notwithstanding anything contained in any other provision of this Act be determined in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975. Thus, from the conjoint reading of the above referred provisions of the Act, it is crystal clear that the rebate of duty of excise on goods exported or on excisable material used in the manufacture of goods which are exported are eligible for refund and such refund includes rebate of duty as well as the duty of excise on excisable material and the refund of such rebate of duty is payable in cash to the applicant if such amount is relatable to rebate of duty of excise on excisable goods exported out of India on excisable material used in the manufacture of goods which is exported out of India."

Explanation. - "Export" includes goods shipped as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft."

13. In terms of Rule 18, the notification No. 21/2004 dated 6th September, 2004 has been issued. The said notification has been quoted above. Along with the said notification, the notification Nos. 19/2004 and 20/2004 were also issued on 6th September, 2004. They provide for rebate of duty on export of goods to all countries other than Nepal and Bhutan and rebate of duty on exports of excisable goods to Nepal respectively.