2008 (12) TMI 183 - AT - Customs

DEPB relevant date change in DEPB rate - Importer filed EDI shipping bill dated 1-10-04 for export of Black Pipe made of Hot Rolled steel Coil and on 5-10-04, the goods were brought to export shed. The goods were examined and Let Export Order was given on the same day (i.e. 5-10-04) by noting on the back side of the shipping bill by the proper officer. A letter was issued after examination of the goods on the same date. On 6th October, 2004, computerized processed shipping bill was issued. It is noted that on 6-10-04, new D.E.P.B. rate was introduced, which is lower rate than the earlier rate Held that - DEPB rate as prevailing on 5th October, 2004 would be applicable

Summary

Issues involved:
1. Determination of applicable DEPB rate based on the date of export.

Analysis:
The case revolved around the question of whether the DEPB rate prevailing on 5th October, 2004, or the new rate introduced on 6th October, 2004, should be applied to the export transaction. The respondent had filed an EDI shipping bill on 1-10-04 for the export of goods, which were examined and cleared for export on 5-10-04. However, a computerized processed shipping bill was issued on 6-10-04, coinciding with the introduction of a new, lower DEPB rate. The Adjudicating authority applied the new rate, but the Commissioner (Appeals) set aside this decision, leading to the Revenue filing an appeal.

Upon review, the Tribunal considered the Customs Public Notice No. 13/98, dated 20th March, 1998, which the Revenue relied on to argue that the DEPB rate should be determined based on the computerized processed shipping bill. The respondent, supported by the Commissioner (Appeals), contended that the goods were examined and cleared for export on 5th October, 2004, as evidenced by the Let Export Order issued on that day. The Commissioner (Appeals) highlighted that as per Section 16(1)(a) of the Customs Act, the rate prevailing on 5-10-04 should apply to the goods. The Tribunal concurred with this interpretation, emphasizing that the goods were permitted for clearance and loading for exportation on 5th October, 2004, based on the Let Export Order issued on that date.

In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) that the DEPB rate as prevailing on 5th October, 2004, should be applied to the export transaction. The appeal by the Revenue was dismissed, affirming that the goods were cleared for export on 5th October, 2004, and thus, the rate applicable on that date was deemed appropriate.

This judgment clarifies the significance of the date of clearance for export in determining the applicable DEPB rate and underscores the importance of adherence to procedural requirements in export transactions.