2021 (3) TMI 716 - AT - Customs

Advance Authorization scheme - fulfillment of export obligation or not - delay on the part of the JDGFT to issue the discharge certificate - HELD THAT - The appellant has fulfilled the export obligation and has submitted all the relevant documents to the JDGFT office within time but the redemption letter was issued by the JDGFT after inordinate delay and in the meantime, show-cause notice was issued and duty foregone was confirmed - the appellant has produced the redemption letter on record which shows that the appellant has fulfilled the export obligation required under the advance authorization issued under customs Notification No.96/2009-Customs dt. 11/09/2009. As export obligation is fulfilled, the appeal is allowed - decided in favor of appellant.

Summary

Issues:
1. Appeal against rejection of appeal by Commissioner of Customs(Appeals) upholding Order-in-Appeal regarding duty foregone on imported 'Mustard Seed Bran Meal' under Customs Notification No.96/2009-Cus.
2. Fulfillment of export obligation within specified period and production of evidence.
3. Delay in issuance of redemption letter by JDGFT leading to confirmation of duty foregone.
4. Legal sustainability of impugned order and relevance of redemption certificate issued by JDGFT.

Analysis:
1. The appellant imported 'Mustard Seed Bran Meal' claiming duty exemption under Customs Notification No.96/2009-Cus but failed to produce evidence of fulfilling the export obligation within the specified period. The duty foregone amounting to ?10,73,099/- was confirmed by the adjudicating authority, leading to the appeal against rejection by Commissioner of Customs(Appeals).
2. The appellant argued that they fulfilled the export obligation by submitting relevant documents to JDGFT within time, despite a delay in the issuance of the redemption letter. The appellant also cited a judgment by the Hon'ble High Court in their favor, emphasizing compliance with export obligations and the delay in JDGFT's issuance of the discharge certificate.
3. The AR reiterated the findings of the impugned order, emphasizing the duty confirmation due to the appellant's failure to produce necessary documents within the stipulated period.
4. The Tribunal found that the appellant indeed fulfilled the export obligation by submitting all relevant documents to JDGFT within time, with the redemption letter eventually issued. Citing the judgment of the Hon'ble High Court in the appellant's favor, the Tribunal held the impugned order unsustainable in law and set it aside, granting consequential relief based on the redemption certificate issued by JDGFT, thus ruling in favor of the appellant.