9911796707
TMI Blog2025 (3) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... goods/waste into DTA, improper removal from bonded warehouse, entitlement to deemed export and remission of duty and that the case of the appellant is with regard to consumption of inputs, where export proceeds have not being realized and therefore the decisions cited by the appellant were not found relevant to the issue and therefore were not considered. The appellant in the appeal and during the hearing also has relied on the same case laws. We find that it is an undisputed fact that the appellant has not realized foreign exchange for the exports made during the year 2006-07 to the extent of Rs. Rs. 47,68,477/-and they have also written off of Rs. 6,08,729/-as bad debts. The conditions prescribed in the Notification Nos. 23/2003-CE and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... change is not received the duty foregone in the inputs should be remitted and accordingly, the appellant was made to pay duty foregone amount of Rs.2,63,930/-along with interest of Rs. 1,77,668/-. 3. Thereafter, appellant has filed a refund application to claim refund of amounts paid by them on the grounds that as per Notification No. 52/2003-Cus. dated 31.03.2003 and Notification No. 23/2003-CE. dated 31.03.2003 there is no provision to demand duty foregone on the inputs, pending realization of foreign exchange, and further to treat the amounts paid as 'under protest'. 4. The adjudicating authority has held that; the realisation of the export proceeds is a must in the case of exports to other countries; the refund claim is not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demanded; the action taken by RBI is not relevant to the action taken by the department of Customs/ Excise; the principles of natural justice have been followed by the adjudicating authority; the case law cited by the applicant are not relevant to this case as they pertain to duty demand on diversion of the finished goods; the officers of the Department are duty bound to monitor the performance of EOU to the extent that the object of the scheme is fulfilled and it is obligatory on the part of the exporter to realize and account for the sale proceeds of the goods exported having availed the duty exemption on procurements for fulfilment of export business; in this regard the Department is bound to initiate recovery proceedings in terms of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the same cannot be read into the Notification; since the goods have been physically exported which is not disputed the duty reversal is not required. 8. The learned AR reiterated the findings of the adjudicating authority and the appellate authority. 9. Heard both sides and perused the records. 10. We find that in this case the appellant has filed a refund claim seeking refund of duty paid along with interest on being pointed out by the Customs Audit of an amount of Rs.4,41,598/- towards the duty foregone on the inputs used for the export of goods for which the foreign exchange has not been realized and to that effect the bank realization certificates have also not been submitted by the appellant. We find that the appellant has conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 to the extent of Rs. Rs. 47,68,477/-and they have also written off of Rs. 6,08,729/-as bad debts. The appellant contends that they have achieved positive NFE and that it is sufficient to meet the conditions of Notification Nos. 23/2003-CE and 52/2003-Cus and therefore the demand for duty forgone on inputs used in the exports for which there was no foreign exchange realization is untenable. We find that the conditions prescribed in the Notification Nos. 23/2003-CE and 52/2003-Cus and B-17 bond executed by the appellant read with the Exim policy allows the Customs/Excise department to demand duty foregone on the inputs used in the export of goods, where the foreign exchange is not realized. In view of the above discussion we find that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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