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2025 (1) TMI 636 - AAR - CustomsJurisdiction of Advance Ruling - Duty drawback under Rule 6/Rule 7 of the Customs and Central Excise Duties Drawback Rules 2017 (notified vide Notification No. 88/2017 dated 21st September 2017) for goods manufactured in the MOOWR premises (Manufacturing and Other Operations in Warehouse Regulations 2019) and exported therefrom - requirement of import of duty paid raw materials consumed for manufacture of exported goods - import of bonded premise without payment of customs duty under Advance Authorization in accordance with Notification No. 21/2023-Customs dated 1st April 2023 - supply of manufactured goods by the Applicant to third party customer would be considered as a DTA Sales or Exports. Whether any such jurisdiction of pronouncing ruling as to the question of duty drawback is vested in this Authority or otherwise? - HELD THAT - It is understood that in the clause (d) of the sub-section (2) of the Section 28(H) of the Customs Act 1962 there is not any mention of the word drawback; or refund with the words duty or tax. However it is amply clear that the words chargeable and leviable are expressly mentioned in the same clause and it is observed that these words are associated with the words duty and tax. Therefore addition of the word drawback with the words duty or tax would be unwarranted and extraneous. Further in the case of Harshad Chiman Lal Modi v. DLF Universal Ltd. 2005 (9) TMI 588 - SUPREME COURT the Hon ble Supreme Court held that where a court has no jurisdiction over the subject-matter of the suit by reason of any limitation imposed by statute charter or commission it cannot take up the cause or matter. An order passed by a Court having no jurisdiction is a nullity. The questions related to duty drawback involved in the present application do not fall within the ambit of any parameter on which Advance Ruling can be sought. Benefit of exemption Notification No. 21/2023 dated 1-4-2023 - HELD THAT - To avail the benefit of exemption Notification No. 21/2023 dated 1-4-2023 filing a Bill of Entry for home consumption is mandatory. Once the benefits of the Advance Authorisation scheme are claimed by the applicant then the goods imported under said Advance Authorisation shall not be considered as warehoused goods in terms of Section 60 of the Customs Act - The Applicant believes that it can debond the capital goods warehoused into the MOOWR unit by using EPCG authorization. The applicant has clarified that the query does not pertain to admissibility of depreciation benefits at the time of debonding as is admissible to EPCG Scheme rather the query is only whether at the time of de-bonding of capital goods imported under the MOOWR Scheme when the applicant is required to pay appropriate customs duties whether the benefit of exemption notified vide Notification No. 26/2023-Customs dated 1st April 2023 can be availed by the Applicant. Whether the Applicant can import goods in bonded premises without payment of customs duty under Advance Authorization and use such goods in the manufacture of exported products? - HELD THAT - All the three warehouses are set up under different provisions of the Act and they have their own procedures. Public and Private Bonded warehouses are set up to only deposit the goods and not any manufacturing process or other operations are specifically provided in these two warehouses in relation to the goods warehoused therein whereas owner of the MOOWR units are allowed to carry on any manufacturing process or other operations in the MOOWR unit in relations to the goods warehoused therein. Therefore the provisions of the Private Bonded warehouses licensed under Section 58 of the Act and Private Bonded warehouses licensed under both Section 58 and Section 65 are on different footings and cross utilisation of the benefits granted to the owners of the such warehouses does not appear to be specifically provided in the statute - clause (b) of para 2.36 of the FTP is only about Private Bonded warehouse and Public Bonded warehouse licensed under section 58 and section 57 respectively wherein goods are warehouses/deposited and not any manufacturing process or other operations are carried in relations to such goods. However in the case at hand activity is different inasmuch as MOOWR unit of the applicant is licensed not only under section 58 but also under section 65 wherein any manufacturing process or other operations may be carried on in relations to the goods warehoused therein. Conclusion - i) There no such jurisdiction vested in this authority as per the mandate of Chapter VB of the Customs Act 1962. ii) Subject to the fulfilment of the conditions stipulated in the Notification No. 21/2023-Customs dated 1st April 2023 and current Foreign Trade Policy the Applicant can import the goods into the MOOWR unit upon filing a bill of entry for home consumption and clearance at the customs station of import. Such goods shall not be considered as warehoused goods in terms of section 60 of the Act. iii) The capital goods on which the benefits of deferral of Customs duty have already been availed/claimed under the MOOWR Scheme cannot be further de-bonded by using/utilising EPCH license. iv) Supply of manufactured goods by the Applicant to third party customer can be considered as Exports in case the third-party customer exports such goods as it is outside India and in case the goods are directly delivered to the port of Export.
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