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2014 (12) TMI 309 - HC - CustomsDenial of duty drawback - export of Flanges - Deputy Commissioner (DBK), Kandla rejected the said claim by observing that as the petitioner has not used imported material for the manufacture of Flanges, the petitioner will not be entitled to the claim of duty drawback - The said authority, therefore, came to the conclusion that the aforesaid entries i.e. 73.29 and 73.30 cannot be applied to the export of Flanges by the petitioner for claiming duty drawback in the Schedule for 2002-2003 and Entry No. 73.28 in the drawback schedule for the financial year 2003-2004. - Held that:- When there is no specific mention with respect to “Flanges” in the SS No. 73.29, the claim of the petitioners for duty drawback at the rate of ₹ 19 per Kg. as per SS No. 73.29/73.28 is rightly rejected. At this stage it is required to be noted and it is not disputed by Mr. Dave, learned advocate appearing on behalf of the petitioners that Flanges require low grade steel as input and the value of which is very low. So far as the other products as mentioned in SS No. 73.29/73.30 are concerned, they require a high grade steel as input and consequently the value of the same would also be very high. Therefore, “Flanges” cannot be compared with other produces as mentioned in SS No. 73.29/73.28 as the value of the materials used for production of Flanges and the production of other goods/class of goods would be different and would vary substantially. Therefore, if the contention of the petitioners is accepted that the petitioners shall be entitled to All Industry Duty Drawback at the rate of ₹ 19 per Kg. under SS No. 73.29 at par with other products as mentioned in SS No. 73.29, in that case, as the petitioners had used low grade steel as input in the manufacture of Flanges and the value of which is very low, the petitioners shall be getting duty drawback at the higher amount i.e. ₹ 19 per Kg. which is not permissible. Right from the beginning and when the Notification No. 33 was issued, as such there is no mention with respect to Flanges in the SS No. 73.29. As such, as the controversy had arisen whether on manufacture of export of “Flanges” duty drawback at the rate of ₹ 19 per Kg. under SS No. 73.29 is available or not, the aforesaid clarificatory Circulars have been issued. That does not mean that it is oppressive circular and therefore, the same is required to be applied prospectively. petitioners have been denied duty drawback as claimed on the ground that the petitioners have failed to give declaration in respect of DBK Claimed under respective SS No as required under Rule 12(1)(a)(ii) of the Customs and Central Excise Duties Drawback Rules, 1995. However, nothing turns on that specifically, as observed hereinabove, Flanges is not included under SS No. 73.29 under which the petitioners have claimed All Industry Duty Drawback at the rate of ₹ 19 per Kg. on Steel content. Under the circumstances, the revisional authority is justified in denying All Industry Drawback Duty as claimed by the petitioners under SS No. 73.29/73.30 on export of “Flanges”. We see no error in the impugned order passed by the revisional authority - Decided against assessee.
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