2005 (5) TMI 77 - HC - Customs

Summary

Issues involved:
1. Export of Printed Polystyrene Sheets under DEPB Scheme
2. Applicability of DEPB benefits
3. Interpretation of DEPB rate list
4. Judicial review of Customs Department's decision
5. Appeals process before Commissioner (Appeals) and CESTAT
6. Clarifications sought from DGFT
7. Final assessment of shipping bills under DEPB scheme

Issue 1: Export of Printed Polystyrene Sheets under DEPB Scheme
The Appellants exported Printed Polystyrene Sheets and claimed benefits under Serial Number 15 of the DEPB Schedule in the Shipping Bill. The DEPB Committee of DGFT reconsidered the case and opined that the addition of master batch or pigments for coloring/printing does not alter the basic character of the product. However, due to the product price being influenced by factors other than input costs, the export product was deemed ineligible under the DEPB rate list.

Issue 2: Applicability of DEPB benefits
The Deputy Commissioner of Customs conveyed that the Printed Polystyrene Sheets were not covered under the relevant DEPB Serial Number, thereby denying DEPB benefits to the Appellants. Despite their representations, the Customs Department maintained that the export did not qualify for DEPB benefits, resulting in the Appellants filing a Writ Petition seeking judicial intervention.

Issue 3: Interpretation of DEPB rate list
The judicial process unfolded with the Hon'ble Court directing the issuance of a show cause notice, which led to the Deputy Commissioner's decision to treat the export as non-DEPB eligible. Subsequent appeals to the Commissioner (Appeals) and CESTAT were unsuccessful, prompting the Appellants to escalate the matter further.

Issue 4: Judicial review of Customs Department's decision
In a similar matter, the Commissioner of Customs (Appeals) acknowledged the lack of clarification sought during provisional export approval and instructed the Customs Department to seek clarification from DGFT. The Appellants contended that their case differed from previous rulings, emphasizing the need for individual assessment.

Issue 5: Appeals process before Commissioner (Appeals) and CESTAT
The Appellants' appeals before the Commissioner (Appeals) and CESTAT were rejected, leading to the filing of a subsequent appeal, which necessitated a detailed examination of the facts and legal interpretations surrounding the DEPB Scheme.

Issue 6: Clarifications sought from DGFT
The Court intervened, directing the return of assessed DEPB shipping bill copies to the Appellants for further clarification from DGFT. It emphasized the necessity for individual case assessment and the importance of awaiting DGFT's decision before availing any benefits under the DEPB Scheme.

Issue 7: Final assessment of shipping bills under DEPB scheme
Ultimately, the Court modified previous orders, stipulating that the Appellants could not benefit from the DEPB Scheme until DGFT's decision. The Joint DGFT was tasked with evaluating the Appellants' claims and issuing a speaking order, ensuring a fair and timely resolution within a specified timeframe to conclude the appeal process effectively.