9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (1) TMI 636 - AAR - CustomsJurisdiction of Advance Ruling - Duty drawback under Rule 6/Rule 7 of the Customs and Central Excise Duties Drawback Rules, 2017 (notified vide Notification No. 88/2017, dated 21st September 2017) for goods manufactured in the MOOWR premises (Manufacturing and Other Operations in Warehouse Regulations, 2019) and exported therefrom - requirement of import of duty paid raw materials consumed for manufacture of exported goods - import of bonded premise without payment of customs duty under Advance Authorization in accordance with Notification No. 21/2023-Customs, dated 1st April 2023 - supply of manufactured goods by the Applicant to third party customer would be considered as a DTA Sales or Exports. Whether any such jurisdiction of pronouncing ruling as to the question of duty drawback is vested in this Authority or otherwise? - HELD THAT - It is understood that in the clause (d) of the sub-section (2) of the Section 28(H) of the Customs Act, 1962 there is not any mention of the word drawback; or refund with the words duty or tax. However, it is amply clear that the words chargeable and leviable are expressly mentioned in the same clause and it is observed that these words are associated with the words duty and tax. Therefore, addition of the word drawback with the words duty or tax would be unwarranted and extraneous. Further, in the case of Harshad Chiman Lal Modi v. DLF Universal Ltd. 2005 (9) TMI 588 - SUPREME COURT , the Hon ble Supreme Court held that where a court has no jurisdiction over the subject-matter of the suit by reason of any limitation imposed by statute, charter or commission, it cannot take up the cause or matter. An order passed by a Court having no jurisdiction is a nullity. The questions related to duty drawback involved in the present application do not fall within the ambit of any parameter, on which Advance Ruling can be sought. Benefit of exemption Notification No. 21/2023, dated 1-4-2023 - HELD THAT - To avail the benefit of exemption Notification No. 21/2023, dated 1-4-2023, filing a Bill of Entry for home consumption is mandatory. Once the benefits of the Advance Authorisation scheme are claimed by the applicant, then, the goods imported under said Advance Authorisation shall not be considered as warehoused goods in terms of Section 60 of the Customs Act - The Applicant believes that it can debond the capital goods warehoused into the MOOWR unit by using EPCG authorization. The applicant has clarified that the query does not pertain to admissibility of depreciation benefits at the time of debonding as is admissible to EPCG Scheme, rather, the query is only whether at the time of de-bonding of capital goods imported under the MOOWR Scheme, when the applicant is required to pay appropriate customs duties, whether the benefit of exemption notified vide Notification No. 26/2023-Customs, dated 1st April 2023 can be availed by the Applicant. Whether the Applicant can import goods in bonded premises without payment of customs duty under Advance Authorization and use such goods in the manufacture of exported products? - HELD THAT - All the three warehouses are set up under different provisions of the Act and they have their own procedures. Public and Private Bonded warehouses are set up to only deposit the goods and not any manufacturing process or other operations are specifically provided in these two warehouses in relation to the goods warehoused therein, whereas, owner of the MOOWR units are allowed to carry on any manufacturing process or other operations in the MOOWR unit in relations to the goods warehoused therein. Therefore, the provisions of the Private Bonded warehouses licensed under Section 58 of the Act and Private Bonded warehouses licensed under both Section 58 and Section 65 are on different footings and cross utilisation of the benefits, granted to the owners of the such warehouses does not appear to be specifically provided in the statute - clause (b) of para 2.36 of the FTP is only about Private Bonded warehouse and Public Bonded warehouse licensed under section 58 and section 57 respectively wherein goods are warehouses/deposited and not any manufacturing process or other operations are carried in relations to such goods. However, in the case at hand, activity is different inasmuch as MOOWR unit of the applicant is licensed not only under section 58 but also under section 65 wherein any manufacturing process or other operations may be carried on in relations to the goods warehoused therein. Conclusion - i) There no such jurisdiction vested in this authority as per the mandate of Chapter VB of the Customs Act, 1962. ii) Subject to the fulfilment of the conditions stipulated in the Notification No. 21/2023-Customs, dated 1st April 2023 and current Foreign Trade Policy, the Applicant can import the goods into the MOOWR unit, upon filing a bill of entry for home consumption and clearance, at the customs station of import. Such goods shall not be considered as warehoused goods in terms of section 60 of the Act. iii) The capital goods, on which the benefits of deferral of Customs duty have already been availed/claimed under the MOOWR Scheme, cannot be further de-bonded by using/utilising EPCH license. iv) Supply of manufactured goods by the Applicant to third party customer can be considered as Exports in case the third-party customer exports such goods as it is outside India and in case the goods are directly delivered to the port of Export. 1. ISSUES PRESENTED and CONSIDERED The judgment addresses the following core legal questions: (i) Whether Blue Star Climatech Limited (BSCL) can claim duty drawback under Rule 6/Rule 7 of the Customs and Central Excise Duties Drawback Rules, 2017 for goods manufactured in the MOOWR premises and exported therefrom. (ii) If yes, whether there is a requirement for the import of duty-paid raw materials for the manufacture of exported goods, and whether duty drawback would be available if raw materials are procured without payment of customs duty or domestically with GST payment. (iii) Whether BSCL, as a merchant exporter, can claim duty drawback under Rule 6/Rule 7 on export of goods manufactured by BSCL (a MOOWR unit). (iv) If yes, whether there is a requirement for import of duty-paid raw materials for the manufacture of exported goods, and whether duty drawback would be available if raw materials are procured without payment of customs duty or domestically with GST payment. (v) If the answer to question (iv) is yes, whether the duty drawback would be limited to exports done after the filing of the advance ruling application. (vi) Whether the Applicant can import goods in bonded premises without payment of customs duty under Advance Authorization and use such goods in the manufacture of exported products. (vii) Whether the Applicant can apply for an EPCG license and debond capital goods imported under the MOOWR license by utilizing the EPCG license for payment of customs duty payable on debonding. (viii) Whether the supply of manufactured goods by the Applicant to a third-party customer would be considered as DTA Sales or Exports if the third-party customer exports such goods outside India. 2. ISSUE-WISE DETAILED ANALYSIS Issue (i) to (v): Duty Drawback Eligibility
Issue (vi): Import under Advance Authorization
Issue (vii): Debonding with EPCG License
Issue (viii): Classification of Sales as Exports
3. SIGNIFICANT HOLDINGS
|
