A Shipper has initially exported Phycocyanin and a part quantity of the same was rejected for quality reasons which was re-imported by him without payment of duty in terms of Notification No. 158/95-Cus dated 14.11.1995 on executing Bond with Bank Guarantee.
Also he has paid difference
in duty as demanded by Customs. The shipper has re-exported 100% of the said
goods after rectifying the defect and the identification of the re-exported
good is not disputed by the Department.
The shipper then sought
suitable amendment to the re-exported shipping documents to enable the
appellant to claim drawback in terms of Section 74. Comment.
Yes. Shipper is eligible for
conversion of free SB to Sec 74 DBK SB.
The shipper has re-exported
the said goods after addressing the quality issues. Thereafter, the appellant
requested the Department to cancel their RE bond and return the corresponding
Bank Guarantee as the shipper has discharged the obligation thereunder. While
processing the request of the appellant, the Customs Department found that a
part of the re-export was effected few days after the permissible period and
hence, informed them to pay applicable import duties and interest for the
corresponding quantities of re-imports. The shipper has paid the same to cancel
BG.
Thereafter, the appellant
sought suitable amendment to the related re-export shipping documents to enable
the appellant claim drawback in terms of Section 74. The shipper’s request was
rejected without affording him an opportunity of hearing which is in violation
of the principles of natural justice. Also, it is substantive right of the
exporter to claim drawback and it has been consistently held by various High
Courts that substantive right should not be denied on account of procedural
irregularities.
CBEC issued Circular No.
1063/2/2018-CX dated 16.02.2018 whereby they have compiled orders of Hon’ble
Supreme Court High Courts and CESTAT which have been accepted by the Department
on which no review petitions have been filed by the Department. Further note
that at SI. No. 2 of this Circular, the Department has accepted the judgment of
the Hon’ble High Court in the case of CCE Vs Dashiyon Ltd. reported in 2016
(41) STR 884 and the judgment of Hon’ble High Court of Rajasthan in the case of
CCE Jaipur Vs National Engineering Industries Ltd. reported in 2016 (42) STR
945. Further, as per Para 2.1 of the Circular “Department has accepted the
judgment whereby the Hon’ble High Courts dismissed the Department’s Appeal
inter alia holding that substantive benefits cannot be denied because of procedural irregularities.
Hence Hon’ble CESTAT ordered
to remand back the matter, to the Commissioner to consider the claim of the
shipper for conversion of free shipping bills into drawback shipping bills.
M/S BIO GEN EXTRACTS PVT LTD
VERSUS COMMISSIONER OF CUSTOMS BANGALORE, CESTAT BANGALORE, Order pronounced on
31/08/2020
Please Visit
:https://eximblogs.blogspot.com/
www.eximblogs.com
#Customs Law Quick Bites-33
No comments:
Post a Comment