9911796707
|
Home
Issues:
Challenge to denial of DEPB credit at 4% rate by Customs Authorities based on lack of declaration in Shipping Bill regarding use of preservatives and chemicals prescribed in norms for Marine products. Analysis: The appeal was filed against the denial of DEPB credit at 4% by Customs Authorities, restricting it to 2% due to missing declaration in the Shipping Bill regarding the use of prescribed preservatives and chemicals in Marine products. The Commissioner (Appeals) upheld the decision, leading to the appellants challenging it. The advocate for the appellants argued that the Customs Authorities' role is limited to verifying export declaration accuracy, while the Licensing Authority determines credit rates. Reference was made to CBEC Circular No. 15/97-Cus. emphasizing this distinction. The advocate also cited relevant case law supporting the exclusive authority of Licensing Authorities in setting DEPB rates. Additionally, a Gujarat High Court interim order favored allowing claimed credits despite DEPB license expiry, with a bank guarantee requirement. The JDR for the Revenue stressed the necessity of the declaration and cited policy provisions mandating verification of export details against records. The Tribunal carefully reviewed the case records and reiterated the Customs Authorities' role in verifying export declaration accuracy, leaving credit rate determination to Licensing Authorities. The Tribunal emphasized that Customs Authorities lack the power to reduce DEPB rates, as seen in various tribunal decisions and case law references provided by the appellants. The Tribunal highlighted that Customs Authorities can only report discrepancies to the DGFT but cannot unilaterally alter credit rates. Consequently, the appeal was allowed, overturning the impugned order and granting consequential relief, if any. In conclusion, the judgment clarifies the distinct roles of Customs Authorities and Licensing Authorities in determining DEPB credit rates, emphasizing the limited powers of Customs Authorities in altering such rates. The decision underscores the need for accurate export declarations and the exclusive authority of Licensing Authorities in credit rate determination, as supported by legal precedents and policy provisions.
|
