2007 (4) TMI 514 - AT - Customs

Summary

Issues: Whether Pre-Fabricated Steel Buildings are entitled to DEPB Credit under Serial No. 431 of DEPB Schedule.

The dispute revolves around the eligibility of Pre-Fabricated Steel Buildings for DEPB Credit under Serial No. 431 of the DEPB Schedule, which covers Fabricated Steel Hardware/Structure/Articles made out of MS HR Plates/Sheets/Coils/Strips. The lower authorities argued that Fabricated Steel Buildings are classified separately under a different heading in the Customs Tariff. However, the appellants contend that the DEPB Schedule should not be strictly equated with the Customs Tariff Schedule, citing relevant legal precedents to support their stance.

The appellants assert that the exported items are essentially Fabricated Steel Structures in the form of buildings, thus qualifying for DEPB Credit under Serial No. 431 of the DEPB Schedule.

After considering the arguments presented by both parties and examining the case records along with the referenced legal decisions, it was concluded that the appellants' position holds merit. The Entry at Serial No. 431 encompasses Fabricated Steel Structures and unspecified Articles, which includes Fabricated Steel Buildings as a type of structure. Therefore, the DEPB Credit for the exported goods falls under Serial No. 431. Given the clarity of the export and foreign exchange realization, and the need for a reasonable interpretation of the DEPB Entry to grant the export benefit rightfully owed to the appellants, the impugned Order was overturned. Consequently, the DEPB Credit on the goods in question is deemed available under Serial No. 431 of the DEPB Schedule, leading to the allowance of the appeal.