A BRIEF NOTE ON COMPARISON BETWEEN REBATE AND
REFUND OF DUTY UNDER THE INDIRECT TAXATION
Rule
18 of the Central Excise Rules, 2002 provides for Rebate of duty, it states
that Central Government may by notification in the official gazette grant
rebate of Duty paid on excisable goods (Final goods), or duty paid on material
(input) used in manufacturing process or manufacture of goods.
However
the same is subject to some conditions or limitations and procedure. Government
has issued a notification in which it has specified the conditions and
procedure to be followed to claim rebate of duty. (Please refer Notification
No. 19/2004 and 42/2001 for condition and procedure)
For instance:
In case, an item has been manufactured in India and excise duty on the same has
been paid by the manufacturer and in
case this item is exported then exporter
can claim rebate of duty. Therefore, it can said that person who bear the
burden of duty (i.e., manufacturer) and the person (i.e.,
Exporter) who actually claim the rebate may be different. Rebate is
a synonym of refund.
All provision regard rebate of duty has been
articulated as under:
On
the other hand, Refund of duty has been prescribed under Section 11B of the
Central Excise Act, 1944. The definition of refund includes rebate of duty on
excisable goods which are exported outside India.
Refund
of duty can be claimed on import as well as export of goods, there are certain
circumstances like duty paid in excess of what was actually leviable, when duty
is provisionally assessed and in case of pilferage (petty theft) of goods.
The
Application of refund shall be filed within 1 year in specified Form to AC/DC from the
relevant date.
*****
