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TMI Blog2019 (4) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... officers of customs, without authority to do so, for denying claim of drawback. CENVAT credit is a facility that enables the discharge of duty of excise on excisable goods out of common pool and the availment of such credit is, by no stretch of law or procedure or imagination, a discharge of excise duty liability; in fact, the availment arises from, in this instance, from the discharge of additional duties of customs. Under section 74 of Customs Act, 1962, the eligibility is to the extent of 98% of any duty has been paid on importation . The duties of customs, for the purpose of this dispute, is the aggregate of the basic customs duty and the additional duty of customs and as section 74 of Customs Act, 1962 is thus applicable to the wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellate authority remanded the matter back to the original authority directing condonation of delay. In remand proceedings, the original authority limited the eligibility of drawback to 98% of ₹ 39,31,670/- and sanctioned ₹ 38,53,037/-. The remaining amount, paid as additional duties of customs amounting to ₹ 47,07,366/-, was held to be ineligible as CENVAT credit of this amount was likely to be availed by the appellant and, thereby, constituted discharge of duties of central excise, which was not includible for processing under section 74 of Customs Act, 1962. 2. We have heard Learned Counsel for appellant and Learned Authorised Representative. 3. Eligibility to drawback of 98% of the duties of customs paid at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsed/paid after clearance of the Capital Goods was Central Excise duty and nowhere the CENVAT Credit Rules, 2004 allows utilization of the credit for payment of CVD or any Customs duty other than the duties of excise specified in the rules. Therefore, the amount of credit so reversed/paid is not considered for calculating the drawback amount on re-export of the Oilfield Equipments. In other words, the drawback is allowed on the duty amounting to ₹ 39,31,670.00 only as the exporter took credit of the rest of the amount and utilized the same for payment of duty on the clearance of goods from their refinery. 4. It would appear that the provisions of CENVAT Credit Rules, 2004, pertinent to officers of central excise and service tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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