2019 (2) TMI 1051 - HC - Customs

Duty Drawback - all industry rate - petitioner filed only free shipping bills - export made during the period from July 2017 to March 2018, when GST regime was just introduced - Rule 13(1)(a) of the Customs and Central Excise Duties Drawback Rules 2017 - Held that - This Court directs the first respondent to pass appropriate order on the petitioner's application made in this regard. The first respondent will of course bear in mind that during the relevant time, the GST Regime had just then been introduced. Therefore, the case of the writ petitioner may have to receive a liberal approach. This Court directs the first respondent to pass order in accordance with law within a period of four weeks from the date of receipt of a copy of this order - petition disposed off.

Summary

Issues Involved:
Export of "Activated Carbon" products during the GST regime - Entitlement to avail all industrial rate - Delay in settling application for availing all industrial rate - Interpretation of Customs and Central Excise Duties Drawback Rules 2017 - Circular No.36/2010 - Liberal approach due to introduction of GST regime.

Analysis:
The High Court of Madras heard a case involving exporters of "Activated Carbon" products for exports made during the period from July 2017 to March 2018, a time coinciding with the introduction of the GST regime. The exporters had filed free shipping bills due to certain reasons. The petitioners claimed entitlement to avail all industrial rate and had submitted an application in this regard on 15.05.2018, followed by a reminder on 13.12.2018. The Court considered Rule 13(1)(a) of the Customs and Central Excise Duties Drawback Rules 2017, along with Circular No.36/2010 issued by the Department. The Court directed the first respondent to pass an appropriate order on the petitioner's application, emphasizing the need for a liberal approach considering the introduction of the GST regime during the relevant period. The first respondent was instructed to settle the matter within four weeks from the date of the Court's order.

The judgment disposed of the Writ Petition accordingly, without imposing any costs on the parties. The connected Miscellaneous Petition was also closed as a consequence of the main Writ Petition being disposed of. The Court's decision focused on ensuring a timely resolution of the petitioner's application for availing all industrial rate, taking into account the transitional challenges posed by the introduction of the GST regime during the relevant export period. The judgment underscored the importance of interpreting the relevant rules and circulars in a manner that aligns with the evolving legal landscape due to the implementation of new taxation systems.