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2017 (11) TMI 843 - AT - CustomsConversion of free shipping bills into duty drawback shipping bills - Grant of Duty Drawback - All Industry Rate - Held that - A bare reading of Rule 12(1)(a) ibid and the Circular dated 16-1-2004 issued by the C.B.E. & C. demonstrate that the conversion is permissible, only when the exporter is able to satisfy the Commissioner of Customs that for reasons beyond his control , the drawback was not claimed - In the present case, documents available in the case file divulge that the appellant had applied to the Licensing Authority, Jaipur on 21-7-2006 for grant of Duty Free Replenishment Certificate (DFRC) under Para 4.2 of the Handbook of Procedures 2004-09. The correspondence exchanged between the appellant and the DGFT reveals that the appellant was diligently pursuing its matter for issuance of DFRC. Thus, filing of drawback declaration in respect of the shipping bills was beyond the control of the appellant, since revocation of DEL happened much later. Therefore, in terms of the C.B.E. & C. Circular dated 16-1-2004, the ld. Commissioner of Customs should have considered the case of the appellant and allowed the exemption from observing the provisions contained in Rule 12(1)(a) ibid for the purpose allowing drawback. Matter remitted back to the ld. Commissioner of Customs to examine and consider the request of the appellant on merits in terms of the Circular dated 16-1-2004 - appeal allowed by way of remand.
Issues:
Request for allowing drawback at All Industry Rate rejected by Commissioner of Customs, Jaipur. Analysis: The appeal in this case was against an order passed by the Commissioner of Customs, Jaipur, rejecting the appellant's request for allowing drawback at All Industry Rate. The appellant, engaged in the manufacture of Automotive Headlamps, sought conversion of free shipping bills into duty drawback shipping bills for exports made between May 2006 and September 2008. The Commissioner held that there was no provision to convert a free shipping bill to a drawback shipping bill and that the appellant had not filed the necessary declaration as per Rule 12(1)(a) of the Customs & Central Excise Duties Drawback Rules, 1995. The Commissioner concluded that the non-filing of the drawback declaration was not beyond the appellant's control, making it ineligible for exemption under Rule 12(1)(a). The Tribunal noted that the facility for converting free shipping bills into drawback shipping bills is governed by Chapter X of the Customs Act and the Drawback Rules. Rule 12 requires exporters to file statements/declarations at the time of export to avail drawback, with provision for exemption from certain requirements under the rule. Circular No. 4/2004 clarified that the jurisdictional Commissioner can grant exemptions for drawback claims related to All Industry Rates. The conversion is allowed only if the exporter can prove that the drawback was not claimed due to reasons beyond their control. In this case, the appellant had applied for a Duty Free Replenishment Certificate (DFRC) in 2006, but was placed on the Denied Entity List (DEL) by the DGFT due to non-furnishing of export obligation discharge certificates. The DEL status was revoked in 2010. The Tribunal found that the appellant diligently pursued the issuance of DFRC, and the delay in revocation of DEL made filing the drawback declaration beyond their control. Therefore, the Commissioner should have considered granting exemption under Rule 12(1)(a) as per the Circular dated 16-1-2004. The Tribunal set aside the impugned order and remitted the case back to the Commissioner to reexamine the appellant's request in line with the Circular. The Commissioner was directed to provide a personal hearing before deciding the case afresh. The appeal was allowed by way of remand, emphasizing the need for a thorough reconsideration of the appellant's case.
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