2014 (12) TMI 24 - AT - Customs

Denial of drawback claim - out of 25 shipping bills, in case of 13 shipping bills Let Export Order have been issued beyond the period of 36 months from the clearance for home consumption of the impugned goods - Held that - As per the Notification 33/1994 the relevant date is when the goods entered for export and the Notification under Section 74 shows that when the goods are placed under Customs control for export. Therefore, I have examined that whether the date of LET is the relevant date to determine as the date for goods entered for export or the date when the goods put under control of Customs for export is to be taken as date for consideration in the matter. In the light of this, as the exporter filed shipping bill and the goods were placed before the customs authorities for examination - when the goods entered in the Customs area for export the said date is to be termed as date for consideration under Section 74 of the Customs Act, 1962. With these terms as all the shipping bills and the goods have been brought in the Customs area within 36 months from the date of clearance of the home consumption the appellants are entitled for draw back claim. Accordingly, impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
1. Denial of drawback claim by the Commissioner based on the timing of Let Export Order issuance.
2. Interpretation of relevant dates under Notification 33/1994 and Section 74 of the Customs Act.
3. Determining the appropriate date for goods entered for export.

Analysis:
The appellant appealed against the denial of their drawback claim by the Commissioner due to Let Export Orders issued beyond 36 months from the clearance for home consumption of imported machineries for ONGC Exploration. The appellant contended that they filed shipping bills within the prescribed 36-month period, citing Notification 19/1965-Cus. On the other hand, the Revenue argued that as per Notification 33/1994 and Section 74 of the Customs Act, the relevant date is when goods are entered for export within three years from duty payment, considering the Let Export Order issuance date in this case.

Upon considering both arguments, the Tribunal analyzed the discrepancy between the date of Let Export Order and the date when goods were placed under Customs control for export. The Tribunal observed that the date when goods entered the Customs area for export should be the determining factor, not the Let Export Order issuance date. The Tribunal noted that goods being in Customs control and entered in the Customs area for export within 36 months from home consumption clearance entitled the appellant to the drawback claim. Therefore, the impugned order was set aside, and the appeal was allowed with any consequential relief.

In conclusion, the Tribunal's decision clarified the interpretation of relevant dates under the Customs Act and Notifications, emphasizing the significance of the date goods entered the Customs area for export in determining eligibility for drawback claims. The judgment highlighted the importance of adherence to prescribed timelines and procedures in customs-related matters to uphold the rights of appellants in such cases.