9911796707
TMI Blog1999 (5) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... plementary passbook credit was applied on 19 shipping bills for which the export was affected. The appellant is an exporter of aromatic chemical and industrial essential oils under trading house as contemplating as export and import policy of 1992-97/1997-2000. Appellant is an exporter of various dyes and dye intermediate drugs and pharmaceuticals formulations etc. Under the passbook scheme, the relevant date for applying the duty rate and valuation for exports is the date on which the appropriate officers being the appraising officer makes order permitting clearance and loading of goods for exportation under Section 51 of the Customs Act, and for the purposes of valuation of the inputs the value of identical or similar goods on the relevant date imported under the duty exemption scheme as per the contemporaneous records of group VII of the Customs House is to be taken into account as per the Public Notice No. 150/95, dated 21-9-1995 which is issued in pursuant to the Customs Notification 104/95, dated 30-5-1995. In cases where no import of such goods is noticed in group VII on the relevant date, the value of the imports noticed on the nearest date prior to the relevant date is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. He is to credit this amount in the passbook, which may be utilized upon the imports being made by the passbook holder, to pay the basic and additional customs duty on the import goods by a debit entry to be made in the passbook by the designated authority. The import and export has to be made through same airport. The Government of India has published standard input output norms for the export product hexahydrothymol BP(USP) being a bulk drug mentioned in Sl. No. 236 of the published standard input output norms. The Public Notice No. 150/95, dated 21-9-1995 remand in force and affect until 14-3-1997 the aforesaid amendment. 4. The appellant as a passbook holder exported under the above scheme diverse quantities of the product on various states between June,1995 and Feb., 1997 as evidenced by the customs authorities out of charge endorsement on the shipping bills. The appellant used mentha arvensis as input in the export product. Each shipping bill is in the prescribed form, and appropriate Asst. Commissioner of Customs has made an appropriate order on them permitting the clearing and loading of the goods for exportation under Section 51 of the Customs Act. The appellant on ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. On 18.11.98 under the Policy Circular No. 52 (RE-98)/98-99 the Government of India after considering representation from the exporter under the passbook scheme clarified that wherever this provision is modified to the dis-advantage of the exporter operating under the passbook scheme the same shall not be applicable to the consignment already handed over to the customs for examination and subsequent export up to the date of public notice. The appellant preferred a Writ Petition No. 9/99 in the Bombay High Court on 31-12-1998 seeking application of the Public Notice 150/95 and notification 104/95 in respect of the exports described and give credit in the appellant s passbook and to allow it to claim debits against such credits. In the meanwhile, the order in appeal was received by them on 15-1-1999, holding that Public Notice No. 34/97 was applicable. Since writ petition was pending no action was taken on the said order. On 8-2-1999, when writ petition came up for admission, counsel for the department pointed out that the appellant s representation, dated 17-12-1998 was pending consideration by the board and sought 2 weeks time to dispose it of. The Board had rejected to accede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Sheva Customs took the stand that the appeal should be filed against the orders of the Asst. Commissioner, and accordingly it was filed which has resulted in the impugned order. The writ petition of the appellant was admitted in High Court without any interim relief. The Public Notice of 150/95 and Customs Notification 104/95 should have been applied to the instant case on hand and the Public Notice of 34/97 cannot be applied as the exports have taken place prior to 14-3-1997. There is no dispute that the appellant has exported the product hexahydrothymol BP/USP (menthol) being a bulk drug at Item 236 of the input output norms. The Bombay airport have given the credit on the basis of the input being mentha arvensis, which is the only possible input for the export product. So under these circumstances, the appellant is entitled to the supplementary credit as claimed for which is accepted by the department and Chief Commissioner has also initially desired for a consistent strand by all its Commissionerate including Nhava Sheva. The clarification is given by the Board as to the applicability of the public notice under Exhibit F produced in this case. The appellant was not called upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has exported menthol (hexahydrothymol) under the old passbook scheme governed by the Notification No. 104/95, dated 30-5-1995. As per Exhibit D, Public Notice No. 34/97 has amended P.N. No. 150/95, dated 21-9-1995, which is exhibit G, which refers to the subject passbook scheme introduced under paragraph 54 of the Export-Import Policy announced on 31-3-1995 - Notification No. 104/95 Cus., dated 30-5-1995. It is issued with immediate effect from 13-3-1997. So from this it is clear that keeping in view of the provisions of Notification No. 24/97-Cus., dated 6-3-1997, amending Notification No. 104/95-Cus., dated 30-9-1995. Paragraph 2.4 of the Public Notice 150/95-Cus., dated 21-9-1995 shall now be substituted for the purpose of valuation of inputs such value shall be determined by proceeding sequentially through the following methods under clause (1) to (5). Thus it is seen that the Public Notice No. 34 is prospective in nature, without making any provision for the pending credit claims of exporters as contended by the appellant. From the Exhibit K it is clear the exports were during the period from Nov., 1996 to 3-2-1997 only, and not after 6-3-1997 under customs Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chem-Ing. Dorothea Garbe, page 131 and 132. It is required to grant credit to the passbook based by the process of correct raw material i.e. natural essential oil (mentha oil) - arvensis type. As per the literature (Technical) produced by the appellant, it is observed in paragraph 3.1 under the heading essential oil confirmed by groups at pages 65 and 66 of the paper book that as in mentha arvensis oil, menthol is the main component in mentha piperita oil (often over 50%) it further contains (-) menthonse (ca 20%) and (-) menthulesis mainly the acetate (Ca 10%) characteristic of the crude oil in its high content of (+) and mentha furan (2-3%) sometime for higher such a high percentage is undesirable due to the strong aroma of mentha furan. It is therefore largely removed by distillation. By far the leading producer of mentha piperita is the JUS where it is produced in quantity of 2000-3000 tons per year, in a number of States mainly Oregon and Washington, from the mentha and piperita varieties metcham an American. The European production has significantly decreased despite the high quality of the oil. The major portion is used as such for flavouring tooth paste, in other mouth car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e passbook scheme, the scheme shall not be applicable to the consignment already handed over for the customs for examination and subsequent exports up to the date of public notice. Armed with this appellant approached the board on 17-12-1998 for relief of higher credit as against the order of Commissioner of Customs on its representation, dated 28-12-1998 at Exhibit K. This was acceded by the board only after the appellant filed Writ Petition No. 9/99, as per the orders dated 8-2-1998, after the board rejected the higher credit under on 11-2-1999 letter of Under Secretary DBK of Finance Ministry orders, dated 4-3-1999 in the writ petition proceedings shows the attitude of the board in simply rejecting the credit, without any reasons, even though on behalf of the Government, time was taken only for the purpose of giving reasoning. The Hon ble High Court has not appreciated this conduct. Ultimately, the appellant was given higher credit, as per the oral order in the writ petition as is clear from the facts of the case in the appeal memorandum at paragraph 12 and 13 under clauses XVIII and XIX by AC s Bombay Sahara Airport respondent hands in the writ proceedings. It is only Nhava She ..... X X X X Extracts X X X X X X X X Extracts X X X X
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