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TMI Blog2013 (7) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have re-exported the goods under Section 74 and availed drawback benefit subject to compliance of provisions of Section 74 - matter should be considered and proceeded in the light of Hon’ble Supreme Court’s observations in the case of M/s. ITC Ltd. v. CCE [2004 (9) TMI 103 - SUPREME COURT OF INDIA] that the simple and plain reading of statute may be strictly construed without any intendment and any liberal interpretation - Further, Hon’ble Supreme Court in case of M/s. Indian Aluminium Co. [1991 (9) TMI 162 - SUPREME COURT OF INDIA] and Hon’ble Tribunal in case of M/s. Avis Electronics have conclusively opined that when provisions are stipulated for doing a particular act in a specific manner then it would mean that any deviation theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3436 dated 26-5-2009 and was cleared after payment of import duties for manufacture of their final product. However, since they were not in the acute need of the said imported input, they decided to sell out the same to a foreign buyer. However, before exporting the said imported input, they had removed the original packing and labels of the foreign country and relabelled and affixed the said input with their factory s name and address and exported the same goods to Israel, under claim of rebate under Rule 18 of the Central Excise Rules, 2002 on payment of Central Excise duty and education cess. The jurisdictional Assistant Commissioner of Drawback, Central Excise, Belapur after conducting a personal hearing dated 9-6-2010 and after conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent cannot be treated as show cause notice. It has been held in case of HEG Ltd. v. Comm. (Appeals) - 2001 (137) E.L.T. 992 that proper show cause notice not issued before rejection of applicant s claim, applicants given only a letter fixing date of personal hearing within a short time neither a proper opportunity of hearing being given to applicant nor a show cause notice being issued. Principles of natural justice violated. 4.2 The respondent failed to appreciate that the applicants had removed the original identity of the packing and labels of the original manufacturer of the product and relabelled the imported input by affixing the labels of applicants factory to enable them to sell in the market and hence the process of carrying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r proper section, the respondent should have returned the drawback claim ab initio to the applicants for following correct procedure instead of rejecting the same. Rejecting the claim after 90 days was not proper and legal. 4.5 It is submitted that at the time of re-export of the imported goods the Customs Officer who signed and endorsed the export documents had not objected for export though it was specifically mentioned in the export documents that the goods were under drawback scheme. In 2003 (156) E.L.T. 841 (Cal.) the court relied upon the decision in Mangalore Chemicals and Fertilizers Ltd. v. DC - 1991 (55) E.L.T. 437 (S.C.) wherein it was held that in the matter of granting exemption, some provisions are mandatory which are decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one and needs to be condoned as such. 8. In this case matter, the applicable statutory provision of relevant section/chapter note which are as under :- 8.1 Section 75. Drawback on imported materials used in the manufacture of goods which are exported - (1) Where it appears to the Central Government that in respect of goods of any class or description [manufactured, processed or on which any operation has been carried out in India] [being goods, which have been entered for export and in respect of which an order permitting the clearance and loading thereof for exportation has been made under section 51 by the proper officer] [or being goods entered for export by post under section 82 and in respect of which an order permitting clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are stipulated for doing a particular act in a specific manner then it would mean that any deviation therefrom are not permitted at all and it should be performed in that manner itself as per Rules. 9. Government when considers all the factual details of this matter in right perspective, finds that Chapter Note 10 of Chapter 29 is meant for the products of this chapter and further the purpose of the same is to render the product marketable to the consumer. It nowhere grants a general permission to anyone to take a cover to sell or trade the inputs as such for a profit and then claim the beneficial scheme of grant of drawback which actually is meant for genuine re-exports after doing some value added defined operations in the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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