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Issues:
- Admissibility of DEPB value for export of product "pearl magic gel" without using imported inputs specified under Standard Input-Output Norms (SION). Analysis: The appeal before the Appellate Tribunal CESTAT, Kolkata revolves around the admissibility of DEPB value for the export of "pearl magic gel" without utilizing the imported inputs specified under Standard Input-Output Norms (SION). M/s. Emami Ltd. exported various products, including Emami Naturally Fair Pearls intensive fairness cream with real pearls and herbs, along with pearl magic gel packed with fairness cream. The dispute arose when the Revenue challenged the DEPB benefit claimed on the pearl magic gel due to the absence of SION inputs in its manufacture. The Commissioner (Appeals) had set aside the Assistant Commissioner's order denying DEPB credit on beauty cream items and directed the grant of DEPB benefit as per provisions. The Revenue, dissatisfied with this decision, filed the present appeal. The crux of the matter lies in the interpretation of the DEPB scheme vis-`a-vis the requirement of using SION inputs for availing DEPB benefits. The Revenue contended that SION inputs must be used in the manufacture of export products to claim DEPB benefits, citing Para 7.25 of the handbook of procedure of Export and Import Policy 1997-2000. However, the Appellate Tribunal, after hearing arguments from both parties, upheld the Commissioner (Appeals)' decision, deeming it well-founded. The Tribunal found the Revenue's grounds of appeal irrelevant in light of the DEPB scheme's provisions. Ultimately, the Tribunal rejected the Revenue's appeal and granted consequential benefits, if any, to the Respondent. This judgment clarifies that the use of SION inputs is not a mandatory requirement for availing DEPB benefits, emphasizing that the DEPB scheme's focus is on neutralizing customs duties on export contents rather than mandating specific input usage in product manufacturing under the scheme.
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