Export under claim for rebate [Rule 18] :

Where any goods are exported, the Central Government can grant rebate of the duty paid on such excisable goods or the rebate of duty paid on materials used in the manufacture or processing of such goods exported. The rebate is available on materials and not on capital goods used in manufacturing/processing.

The conditions and procedures relating to export under claim of rebate are contained in Notification No. 19/2004 -Central Excise (N.T.) dated 6th September, 2004 issued under rule 18 of the Central Excise Rules, 2002.

It is worth mentioning that as per the definition of the term ‘refund‘ in section 11B of the Central Excise Act, 1944, refund includes ‘rebate‘ of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India. Thus, the procedure specified in the said Rules and the notification issued thereunder are subject to section 11B of the said Act.

“Explanation. – For the purposes of this rule, “export”, with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft.”

Thus, rebate of excise duty will not be available on supply of goods to 100% EOU. As regards supply of goods to SEZ, it has been clarified by CBEC that since SEZ is deemed to be outside the Customs territory of India, any licit clearances of goods to an SEZ from the DTA will continue to be export. Therefore, such clearances will be entitled to the benefit of rebate under rule 18 and of refund of accumulated CENVAT credit under rule 5 of CCR, 2004, as the case may be [Circular No.1001/8/2015-CX.8 dated 28.04.2015].