2006 (11) TMI 35 - AT - Customs

Re-export- Drawback An assessee can claim for drawback on re-export and it can t be disallowed without evidence- On wrong filing of shipping bill drawback can t be denied- Impugned order set aside and matter remanded .

Summary

Issues:
1. Refund claim under Section 27 of the Customs Act, 1962 vs. drawback claim under Section 74 of the Customs Act, 1962.

Analysis:
The case involved the appellant importing moulds for manufacture, which were later found to be defective and re-exported with the intention of replacement by the supplier. The appellant filed a refund claim after re-export, which was rejected by the Deputy Commissioner citing that the case did not fall under Section 27 of the Customs Act, 1962, and the appellant should have sought drawback under Section 74 of the same Act.

Upon appeal, the Commissioner (Appeals) concurred with the original authority's decision, stating that a refund claim was not permissible under Section 27 as the goods were imported, used, and then re-exported. The Commissioner emphasized the necessity of filing a drawback shipping bill for re-exported goods to claim drawback, ensuring the examination of goods to verify their identity and market value.

In response, the appellant's advocate argued that all relevant information for claiming drawback was available to the Revenue, and the rejection was solely based on a technical error in filing the shipping bill. The advocate contended that if the necessary information for drawback was accessible and the goods' identity could be established, procedural errors should not lead to disallowance of drawback.

The Tribunal agreed with the appellant's contention, emphasizing that if the authorities could ascertain the identity of the re-exported goods and relevant information was available, disallowance of drawback solely on procedural grounds was unjustified. Consequently, the Tribunal set aside the previous order and remanded the matter for fresh adjudication, directing the original authority to consider the goods' identity as mentioned in the shipping bill and allowing the appellant to provide additional documentary evidence for establishing the goods' identity.

In conclusion, the Tribunal allowed the appeal by remanding the case for further adjudication, highlighting the importance of considering substantive information over procedural technicalities in claiming drawback for re-exported goods.