No Evidence found to Support Allegations of Mild Steel Billets Exported as Alloy Steel Forgings: CESTAT sets aside Excise Duty Demand

The Kolkata bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) set aside an excise duty demand due to lack of evidence that mild steel billets were exported as alloy steel forgings. During the disputed period (20.06.2003 to 02.08.2003), the Appellant supplied alloy steel ingots to M/s. S.F. Forgings Pvt. Ltd., which manufactured alloy steel forgings and supplied them to M/s. Bankey Behari Commercial Pvt. Ltd. for export. The Appellant claimed a rebate of Rs. 74,48,840/- for the exported goods, which were sealed by central excise officers and exported under Customs supervision. The Department alleged the export of mild steel billets instead of alloy steel forgings but failed to provide evidence. The tribunal ruled that the Appellant correctly claimed the rebate and set aside the duty demand, including interest and penalty.