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TMI Blog2016 (11) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... back on inputs obtained without payment of customs or excise duty. The contention put forward by appellant is that out of the 27 inputs only 5 were imported. The remaining 22 inputs suffered duty. That being a processing industry, the input gets mixed up and it is very difficult to identify a particular input imported under Advance License and used for manufacture and the quantity of inputs imported by Advance License used in manufacture being very less the drawback may allowed. I am not able to agree with this contention of appellant. When the Rule itself, does not permit drawback in case of inputs on which duty has not been paid, the appellant ought to have maintained some procedure/ segregation / accounting method for the inputs used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blish that goods imported under Advance License are not used in manufacture of export goods itself ample ground to reject the refund. Thus as per the impugned orders, in both the appeals the ground for rejection of drawback claim is that the appellant has not been able to establish that the goods imported under Advance Licenses were not utilized for manufacture of goods which were exported and on which drawback is claimed. 3. On behalf of the appellant, the Ld. Counsel Shri. M. Rajendran submitted that the appellant had procured inputs by three different manner. The appellant is using about 27 inputs and out of this, 5 inputs were procured in three different manner i.e., by import under Advance License, by import on payment of duty and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d inputs using Advance License. This means appellant has procured duty free inputs by using Advance License. The sub-clause (ii) to the second proviso to Rule 3, of Draw Back Rules, 1995 states that drawback claim cannot be allowed, if the goods are manufactured using materials imported duty free. Therefore the rejection of drawback claim is legal and proper. 6. I have heard both sides. One of the grounds for rejection of drawback claim by original authority is that it is time barred. The first appellate authority did not go into this issue. Rule 13 of Draw Back Rules, 1995 clearly specifies the time and manner for claiming drawback. It provides that the triplicate copy of the Shipping Bill shall be deemed to be a claim for drawback. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Bill is deemed to be a drawback claim. This facilitates EDI system of drawback claim. He therefore argued that the claim is made within time. I do find force in the argument put forward by the Ld. Counsel as Rule 13 of Draw Back Rules clearly states that the triplicate copy of the shipping bill roting the claim for drawback is deemed to be a claim for drawback filed on the date the proper officer makes order for clearance of goods. This being so the claim is held to be made within time. 7. Another ground raised by adjudicating authority for rejecting drawback is that no evidence has been adduced to show that payment is received from Foreign Currency Account of the SEZ unit. In this regard the Ld. Counsel has pointed out that, the Shi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular input imported under Advance License which is used for manufacture. It is the contention of appellant that the export obligations against import under the Advance License having been fulfilled, the drawback claim cannot be rejected on this ground. 10. Duty drawback is a relief by way of refund of customs/excise duties paid on inputs or raw materials and service tax paid on input services used in the manufacture of export goods. The second proviso to Rule 3 of Drawback Rules, 1995 reads as below: Provided further that no drawback shall be allowed. ii) if the said goods are produced or manufactured, using imported materials or excisable materials or taxable services in respect of which duties or taxes have not been pai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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