9911796707
TMI Blog1993 (8) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... n on facts had taken place; that the order of the Assistant Collector was arbitrary and against principles of natural justice as no opportunity for personal hearing was given; that affixing of label (supplied free of charge by buyer abroad) was not an activity connected with the manufacture and hence out of the purview of Rule 3(1) of the Customs and Central Excise Duty Drawback Rules, 1971; that the Appellate Authority had rightly remanded the case to the original authority for determining whether FOB value of the goods, included the value of the label or hot. According to the respondent this was essential as drawback was claimed on FOB value and they had not included the cost of labels (supplied free of charge) in the value of goods expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect that the imported labels which were earlier cleared duty free under Customs Notification No. 150/80 were affixed on the goods exported. The original authority while sanctioning drawback deducted from the drawback so sanctioned the duty which was foregone on the imported labels which were fixed on the exported goods as per the provisions of sub-rule 1 of Rule 3 ibid. The Appellate Authority while upholding the original authority's finding that fixing of label was manufacturing activity and duty so foregone on the labels was rightly deductible under Rule 3(1) ibid, however, remanded the case to the original authority for verifying whether the value declared for export did or did not include the value of the imported labels. Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or of the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty paid or the rebate, refund or credit obtained. Provided further that no drawback shall be allowed. (i) .......... (ii) If the said goods are produced or manufactured using imported materials or excisable materials in respect of which duties have not been paid; Or (iii) ......... Notification No. 150/80 "In exercise of the power.....Central Government.......... hereby exempt tag or lables (whether made of paper, cloth or plastic)........ when imported into India for fixing on articles for export ............ from the whole of the duty of Customs lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning of Collector (Appeals) is clearly against the express scope of the first proviso to Rule 3(1) ibid. Drawback being worked out on the total inputs and duty relatable thereto it shall be unfair to the Revenue if a break-up of pricing structure is allowed where higher duty incident raw materials are allowed segregation after enjoying exemptions and not taken into account for deductions from the drawback which is permissible at a lower rate. (as happens to be the case here; Rate of duty on labels was over 100% and drawback @ 6 to 10% ad valorem). 11. It is well settled that fixing of labels is an activity connected with manufacture of the goods so as it makes them marketable. Therefore, there is no merit in the respondent's plea that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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