1. This is an appeal by the Collector of Central Excise, Madras, against the order of the Central Board of Excise and Customs dated 25-8-1982 in No. 270. The appeal has been adjourned on two occasions at the instance of the respondent herein and when the appeal was called out to-day, neither the respondent nor any authorised representative on their behalf was present. The appeal is therefore disposed on merits.
2. The respondent exported a consignment of grinders and drilling machines fitted with electric motors under AR 4 No. 21/78-79 dated 12-2-1979 and filed a claim for rebate of duty of Rs. 7,119/- paid on the electric motors fitted to such machinery. Since the respondent did not export admittedly electric motors separately and exported only grinders and drilling machines of which electric motors were component parts, the Collector of Central Excise negatived the claim of the respondent for rebate holding that the notification issued under Rule 12 granting rebate of duty paid on electric motors is not applicable to the respondent. On an appeal preferred by the respondent before the Central Board of Excise and Customs, the Board set aside the order of the Collector of Central Excise and found that the respondent was entitled to the benefit of rebate under Rule 12 notwithstanding the fact that electric motor only formed a component part of grinder/drilling machine which the respondent admittedly exported. The Collector has preferred an appeal against the order of the Board before the Tribunal.
3. The question that arises for consideration in this case is whether the notification issued under Rule 12 of the Central Excise Rules, 1944 would apply to the grant of rebate of duty paid on electric motors which are not separately exported but which merely formed a component part of other items of export, viz. grinders and drilling machines. A scrutiny of Rule 12 and the notification issued thereunder regarding the grant of rebate of excise duty would clearly indicate that rebate is permissible only when "electric motors of sorts and parts there" are exported outside India subject to the conditions and limitations laid down under Rule 12. In the instant case, admittedly the respondent exported a consignment of grinders and drilling machiness fitted with electric motors.
4. Rule 12 empowers the Central Government to grant rebate of duty on excisable goods if exported outside India subject to safeguards, conditions, limitations etc., as may be specified in the notification.
The respondent-company have admittedly exported grinders and drilling machines only and merely because electric motor formed a component part of grinder/drilling machine or fitted thereto, "electric motors or parts" could not be said to have been exported outside India within the meaning of Rule 12 read with the relevant notification. In other words, in the instant case, what admittedly has been exported is a consignment of grinders and drilling machines fitted with electric motors. In view of this interpretation, I am of the view that electric motors fitted to other appliances and which are merely component parts are not eligible for rebate of duty under Rule 12 or the notification issued thereunder.
I, therefore, set aside the order of the Central Board of Excise and Customs appealed against and allow the appeal.