2014 (5) TMI 1092 - CGOVT - Customs

Rejection of drawback claimed under Section 74 of the Customs Act, 1962 read with provision of Re-export of Imported Goods Rules, 1995 - Import of tyres and fitted them in trucks which were finally exported - Original Authority held that the goods exported were not same as imported goods and not exported as such and therefore, not eligible for drawback claim - Held that - applicant has already availed rebate of duty paid on exported goods. At the same time they have also availed Cenvat credit. Applicant is stated to him availed drawback of Customs Portion also. Since the drawback claim is not admissible to them when rebate is already claimed, they have attempted to make out a case for drawback claim under Section 74 of Customs Act. So, the goods exported are Tipper Trailer and the imported inputs are used on this manufacture of Tipper Trailer. As such it is not a case of re-export of imported goods. The lower authorities have rightly rejected the claim of applicant. Revision application rejected

Summary

Issues:
Identification of goods for drawback claim under Section 74 of the Customs Act, 1962.

Analysis:
The case involved M/s. Kailash Vahan Udyog Ltd. filing a revision application against the rejection of their drawback claim under Section 74 of the Customs Act, 1962. The dispute arose when the authorities found that the exported goods (Tipper Trailers) were not the same as the imported goods (auto components) due to the fitting of components on trailers before export. The applicant argued that the imported goods were re-exported as such without any use except for fitting on the trailers, supported by examination reports certifying the unused nature of the imported items. They also cited a circular allowing drawback claims for goods exported along with imported items. The applicant contended that the authorities erred in questioning the examination report and should have guided them to file under Section 75 if Section 74 was not applicable. The government noted that the goods exported were not the same as imported, leading to the rejection of the drawback claim. The original authority and Commissioner (Appeals) upheld this decision, emphasizing the loss of identity of imported goods in the export process, making them ineligible for drawback claim under Section 74. The government concurred with the lower authorities' findings and rejected the revision application, finding no merit in the applicant's contentions. The case highlighted the importance of maintaining the identity of imported goods for drawback claims under Section 74 of the Customs Act, 1962.

This detailed analysis of the judgment addresses the identification of goods issue for the drawback claim under Section 74 of the Customs Act, 1962, covering the arguments presented by the applicant, examination reports, relevant circulars, authorities' decisions, and the government's final ruling, providing a comprehensive understanding of the legal aspects involved in the case.