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TMI Blog2017 (9) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 4,80,567.18 respectively. The importers cleared the goods duty free in terms of Notification No.32/97-Cus dated 01.04.97 with the condition to re-export as ladies shoes/sandals etc. But they failed to produce the end-use certificates from the jurisdictional Asst. Commissioner of Central Excise (Chrompet Division), duly supported by certified export documents such as shipping bills, export invoices, value addition statements of Chartered Accountant, BRCs showing realization of foreign exchange in fulfilment of the export obligation under the said notification. However, the appellants stated that they had exported the goods under DEPB shipping bills. In view of the fact that the appellants had availed benefit of both the Notification No.32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai). 3. On the other hand, Shri A. Cletus, Ld. A.R supports the adjudication order. 4. We find that this Bench of the Tribunal has considered the issue concerning eligibility of DEPB credit in respect of exports of goods manufactured out of goods imported under Notification NO.32/97-Cus. for purposes of jobbing and has held that such DEPB benefit will not apply to such goods vide Final Order No.41452/2017 dt. 04.08.2017 in the case of Presidency Kid Leather Pvt.Ltd. Vs Commissioner of Customs (Exports), Chennai. Relevant paras of the said decision are reproduced below for ready reference : "5.5 Thus it is seen that the scope and purpose of this DEPB scheme was to compensate the exporter for the incidence of customs duty suffered on the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized only for the discharge of export obligation and that FOB value of the resultant products exported is at least 10% more than the CIF value of the goods imported. We therefore find that the Notification No.32/97 is a beneficial provision to facilitate such processes involving jobbing without creating the need for the job worker in India to suffer incidence of customs duties on the imported goods. Precisely due to the requirement that import content of export goods have to necessarily suffer incidence of customs duty for claiming DEPB credit, the said notification No.32/97-Cus also laid down that DEPB was not applicable to export of a commodity or product, interalia, manufactured and or exported by a 100% EOU or by an unit in a free trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /97-Cus as also DEPB credit benefit under Notification No.34/97-Cus. cannot be availed. However, on the issue of entitlement of Notification No.32/97-Cus. even when Drawback/DEPB was sanctioned, the Tribunal in Sierra Trading (P) Ltd. (supra) relied upon by Ld. Advocate, has held that benefit of Notification No.32/97-Cus. could not be denied. The relevant portion of this decision is reproduced below : "4. We have considered submissions from both sides. In this appeal, we are not required to consider whether the drawback and DEPB benefit has been correctly allowed or not as the question in this appeal is restricted to consider whether the appellants are entitled to exemption under Notification No. 32/97. We find that Notification No. 32/97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies of records submitted regarding queries raised, the customs authorities have satisfied themselves that the cost of the soles imported duty-free was not included in the export value and no foreign exchange was paid for the exempted soles and thereafter, they have sanctioned drawback/DEPB. 7. The legal provisions and clarifications issued, as stated above, authorizes the customs authorities not to allow drawback/DEPB on exports made using material imported duty-free under Notification No. 32/97. But these do not come in the way of availing the exemption, provided the conditions stipulated in the exemption notification are satisfied regarding 10% value addition etc. In the peculiar facts of this case, we are of the view that when the cus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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