TMI Blog1994 (11) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... ount as was ordered by the original authority in terms of drawback Circular 9/92 issued under Ministry's circular F. No. 600/2707/92-DBK, dated 17-12-1992. The Collector also held that in the strict sense of `manufacture' under Central Excise, fixing the labels and tags to the garments does not amount to manufacture. 2. The respondents in their reply dated 13-8-1994 to the show cause notice of even no. dated 26-7-1994 have inter alia stated that there was no cause of review as Circular No. 9/92 only referred to customs Notification 219/89 (relating to duty-free import of tags, labels, etc. supplied free of charge by the buyer abroad) and not to tags and labels imported and cleared under Notification 150/80. Further, according to them, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where tags etc. are imported under Notification No. 219/89 was issued only after the above circular and apparently incorporated the practice of Bangalore Customs into the drawback schedule. The fact that there is no related deduction enumerated in the said sub-serial number relating to Notification No. 150/80 does not limit the application of Rule 3, which, as stated above, shall have independent application. In short, therefore even if the drawback Circular No. 9/92, note under sub-serial No. 2707, both related to Notification No. 219/89 only, it is absolutely correct and permissible for Customs to make deductions as provided under Rule 3. In this view of the matter deductions, in pursuance of proviso to Rule 3 in the context of duty exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted goods as well. It being clearly intended that an exporter should get compensated even in respect of duties borne by material used for containing or packing the export goods. This approach is also justified if regard is had to the fact that drawback is based on FOB value and the relevant event for sanction is export. 10. In view of the above discussions, it is considered view of the Government that irrespective of drawback Circular No. 9/92 and irrespective of the fact whether deduction is incorporated as such or not under a sub-serial, first proviso to Rule 3(1) shall have application on its own force. Hence, deductions as ordered by the original authority were correct, though, it may be stated that it is not really happily worded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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