Refund in cases of exported liquor

Where excise duty has been levied in respect of the manufacture or production of any liquor in the Union territory and such liquor is subsequently exported to any other state in India and is subjected to excise or countervailing duty in that state, the Excise Commissioner may on production of proof of such payment of duty, grant refund of duty already paid to such extent as the Government may prescribe: Provided that where the Government so directs, the Excise Commissioner may, permit during such period or periods as may be specified in such direction, the export of any liquor on which excise duty is payable, on the furnishing of adequate security for payment of the excise duty due thereon; and, on production of proof of payment of countervailing duty on such liquor in any other State give rebate to the extent prescribed under this section and collect the balance of the excise duty.