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2014 (1) TMI 1526 - DELHI HIGH COURTDuty Drawback - restriction to allow Cenvat Credit - Merchant exporter - readymade garments purchased from the open market - Circular No. 54/2001-Cus dated 19.10.2001 and Circular No.16/2009-Cus dated 25.05.2009 - Whether the demand is to be sustained in view of para(iv) of Circular 17/97-Cus. and para (vi) of Circular 64/98 though these are not relied upon in SCN - Held that:- We are not inclined to confirm such huge liability for past periods based on Circulars which were in the knowledge of the department and which were not implemented. We would like to rely more on the legal provisions. The only legal provision relied upon is Rule 3 of the drawback Rules. We agree with the interpretation to this Rule given by the Board in Circular 16/2009-Cus. The argument that this interpretation is applicable from date of issue of Circular 16/2009-Cus. Is repugnant to logic because the Rule has remained the same except for amendment on 13-7-2006, to take care of incidence and rebate of Service Tax - Following decision of COMMISSIONER OF CUSTOMS (EXPORT) Versus KULTAR EXPORT [2012 (10) TMI 79 - DELHI HIGH COURT] - order, disallowing Central Excise portion of the drawback, in terms of the adjudicating authority and revisional order is hereby set aside - Decided in favour of assessee.
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