2011 (9) TMI 302 - AT - Customs

Applicability of Notification 77/08 which is dated 13.6.2008 - Refund of export duties wrongly paid - There is no doubt or dispute about the fact that Notification takes effect from the midnight of 12th and 13th June 2008 - In the instant case the Let Export Order has been given on 13.6.2008 and therefore the benefit of Notification 77/08 dated 13.6.2008 shall apply to the exports made by the appellant and hence they are rightly entitled for the refund of export duties wrongly paid by them - Decided against the assessee.

Summary

Issues:
Appeal against rejection of refund claims on export duty paid before withdrawal of duty, interpretation of the effective date of a customs notification, applicability of the Let Export Order date for determining export duty rate, admissibility of refund claims challenged by the department.

Analysis:
The case involved multiple appeals by Jindal Saw Ltd. and the Commissioner of Customs, Export Promotion, Mumbai-I concerning the payment and refund of export duty on alloy steel seamless pipes/tubes. The appellant filed seven shipping bills for export, paying export duty as per Notification no. 66/08. Subsequently, Notification 77/08 withdrew the export duty, leading to refund claims by the exporter. The Commissioner rejected the appeals, stating the goods were exported before the effective date of Notification 77/08. However, the Commissioner (Appeals) allowed the exporter's appeal, citing the Let Export Order date as relevant for determining the export duty rate, leading to the refund eligibility based on the nil duty on 13.6.2008.

The department challenged the refund claims' admissibility, arguing conflicting orders and the exporter's failure to challenge the assessment of export duty. The appellant contended that the department's appeal was factually incorrect, emphasizing the effect of Notification 77/08 from the midnight of 12th and 13th June 2008, making them entitled to a refund due to nil export duty on 13.6.2008. The JCDR conceded the issue, leading to a detailed consideration by the Tribunal.

The Tribunal analyzed the submissions and clarified that the Priya Blue judgment did not apply as the appellant had challenged the assessment order before them. Confirming the effective date of Notification 77/08 and the Let Export Order date's relevance for determining the export duty rate, the Tribunal held in favor of the appellant. Consequently, the seven appeals by Jindal Saw Ltd. were allowed with consequential reliefs, while the department's appeal was dismissed for lacking merit.

In conclusion, the Tribunal's judgment favored the appellant, allowing their appeals for refund of export duties wrongly paid, based on the effective date of the customs notification and the Let Export Order date's significance in determining the export duty rate. The department's appeal was dismissed, emphasizing the correct interpretation of the legal provisions and factual circumstances.