2016 (8) TMI 30

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..... hat the said goods fall under Tariff item no. 2925000099 (others) attracting 1% of drawback on FOB. 2. The facts are that the appellants are engaged in the manufacture of Bulk Drugs. The appellants filed one drawback claim on 13.9.2012 for an amount of Rs. 5,39,279/- claiming 4% of FOB value under the drawback schedule No. 295209002 against the product Metformin HCL PH EUR & Metformin HCL USP. The department was of the view that the drawback schedule S.No. 2925209002 pertains to Metformin Hydrochloride BP and since the products exported are Metformin HCL PH EUR & Metformin HCL USP the products have to be re-classified under draw back schedule No. 2925000099 and that draw back at the rate of 1% only can be allowed. A show cause notice was i .....

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..... tems and descriptions of goods in the drawback schedule are aligned with the tariff items and descriptions of goods in the Customs Tariff only upto four-digit level. Hence, so long as the alignment is there at the four digit level, there should not be any difficulty for exporters to claim drawback as per the rate specified in the Drawback Schedule, notwithstanding the fact that there may be difference in the classification of the said item at six or more digit level. " 6.   Again, the relevant portion of Circular No. 37/2013-Cus-dated 14.09.2013 is reproduced as below: "For entries in the Schedule that are related to pharmacopeia, where the product descriptions bear suffix like IP and/or BP and/or USP, it is hereby clarified th .....

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..... xport documents containing the export product suffixing any other pharmacopoeia, viz., BP or EP or JP or IP may also be accepted  towards fulfillment of export obligation against relevant Advance   Authorization. Thus pharmacopeia IP, BP, EP, JP or USP may be treated as interchangeable for the purpose of fulfillment of export obligation. " 9.   All the above make it candid that pharmacopeia IP, BP, EP, JP, or USP may be treated as interchangeable. The Circulars are binding on the department and the contention of the department, that basing on pharmacopeia suffixed the product has to be reclassified as 'other' is not tenable. The Tariff item 2925209002 pertains to Metformin HCL BP. Mere difference in pharmacopeia ca .....

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