2005 (2) TMI 570 - AT - Customs

Summary

Issues: Availability of DEPB Credit

In the appeal filed by M/s. Sita Ram Ram Dhan & Co., the primary issue revolves around the availability of Duty Entitlement Passbook (DEPB) credit. The appellant exported specific items under Shipping Bills, and the contention arises regarding the application of DEPB rates concerning the date of order for export and subsequent revisions in the rates.

Analysis:

The learned Advocate representing the appellant argued that DEPB credit should be granted based on the rates applicable at the time of submitting the Shipping Bills, rather than the revised rates post-export order. It was highlighted that the Department had utilized downward revised DEPB rates effective from 31-3-2002, while the rates were further revised retrospectively from 1-4-2002 by Public Notice No. 62 (RE-2002)/2002-2007, dated 17-2-2003. The appellant's counsel emphasized the necessity of awarding DEPB credit according to the revised rates mentioned in the Public Notice.

Upon evaluating the submissions from both parties, the Tribunal acknowledged the appellant's plea for DEPB credit based on the rates revised by the Public Notice dated 17-2-2003, effective from 1-4-2002. The Tribunal referred to the specific provision in the Public Notice concerning the applicability of revised DEPB rates for items listed in the Schedule of DEPB Rates, indicating the period from 1-4-2002 onwards.

Consequently, the Tribunal overturned the impugned Order and instructed the jurisdictional Adjudicating Authority to reassess the matter considering the rates revised by Public Notice No. 62 (RE-2002)/2002-2007, dated 17-2-2003. This decision aimed to ensure the correct application of DEPB rates in accordance with the regulatory amendments, emphasizing the importance of aligning the DEPB credit with the revised rates specified in the Public Notice for the relevant period.