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Issues involved: Refund claim of differential amount in export incentives based on conflicting circulars issued by DGFT, challenge to original assessment order, entitlement to higher export incentives based on similar case precedent.
Summary: The appeal was filed against an Order-in-Appeal passed by the Commissioner of Customs, Mumbai Zone-I. The appellant, M/s. Steelco Gujarat Ltd., had filed a refund claim on the grounds of differential amount in export incentives. The dispute arose regarding the credit rate applicable to the export of 'mild steel galvanized sheets/strips' under DEPB. The department contended that the products fell under a lower credit rate entry, leading to a demand for payment of excess credit availed. The appellant paid the excess credit under protest based on a DGFT circular from 2000. Subsequently, a 2003 circular clarified the eligibility for the higher credit rate, prompting the appellant to file a refund claim. The department rejected the claim citing non-challenge to the original assessment order. The appellant argued that the payment was made under protest, and similar cases had been allowed higher incentives based on court directions. The Tribunal noted that the original order was a general directive applicable to all exporters and subsequent DGFT circulars clarified the eligibility criteria for higher incentives. The appellant had paid the excess amount under protest, and the department's rejection without addressing the protest was deemed improper. Referring to a similar case precedent where higher incentives were allowed, the Tribunal ruled in favor of the appellant, granting the appeal with consequential relief.
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