2026-VIL-649-GUJ-CE
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CENTRAL EXCISE High Court Cases

Central Excise - Rebate of Central Excise Duty on Exported Goods - Loss of Moisture Content – Quantity of Metallurgical Coke actually exported, as reflected in the shipping bills, was less than the quantity cleared due to loss of moisture content during transit from the factory to the port. The appellant claimed rebate under Rule 18 of the Central Excise Rules, 2002 on the entire quantity cleared but respondent authorities sanctioned rebate only on the actual quantity exported as per shipping bills, disallowing rebate on the quantity lost due to moisture evaporation -Whether rebate of duty under Rule 18 of the Central Excise Rules, 2002 can be granted on the quantity of goods cleared from the factory or only on the actual quantity of goods exported out of India – HELD – The petitioner, as required by the provision of Rule-4 of the Rules, 2002, paid the duty on the goods which it manufactured, however, the goods exported were less in weight than the one which were loaded in the trucks at the factory premises - The rebate of duty is intrinsically connected with the export of goods. The plain reading of Rule 18 and its explanation clarifies that export means taking goods out of India to a place outside India - The Notification dated 06.09.2004 issued under Rule 18 mandatorily specifies that excisable goods shall be exported after payment of duty and rebate has to be processed and calculated on the quantity of goods actually exported. The petitioner failed to declare the loss of moisture content in the goods at the time of paying duty and clearing from the factory, and in the absence of such declaration at the relevant point, the Customs authorities cannot be expected to presume that substantial shortage in quantity was caused merely by moisture loss - Since the petitioner failed to calculate and declare the moisture content while loading goods from warehouse till they reached the dock for export, rebate cannot be processed on the quantity reduced on account of moisture. The respondent authorities correctly determined rebate on the actual quantity of goods exported as per shipping bills - The orders of the respondent authorities are upheld and the petitions are dismissed
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