Rebate of rejected imported reexported goods

This query is : Resolved

vinay (Querist)
Follow

15 October 2013 Dear sir,
we are manufacturer had imported polyester film from our overseas supplier,

during the F.Y. we imported said commodity paid all custom import duties at applicable rate. accordingly we availed CVD, Cess on CVD and Special Additional duty.

on receipt of import goods, some of qty rejected by our Quality control dept. overseas supplier had also agreed to get all these rejected lot. on which we re exported entire rejected lot u/ r Custom sec.74 .
we re-exported rej.Qty u/r Cover of ARE-1 as input as such Clearance on debit of duties ( CVD.CVD Cess and 4% addl duty) in credit account.
we submitted Rebate claim Application with Deputy commissioner Central Excise , Central Excise dept. had sactioned Rebate and issued Cheque to us, after one month excise dept objected and issued demand notice to pay back rebate amount alongwith interest as they stated that this is an erroneous claim and goods re-exported are not excisable .

we do wish your valuable guidance whether we have to return back rebate amount alongwith interest . if we have to pay back to excise dept . then from whom debited duty will be get back.

regds
vinay Karnik
Ahmedabad