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2020 (2) TMI 1376 - HC - CustomsCancellation of the petitioner’s advance licence - suspension of the IEC of the petitioner till the amount of customs duty plus interest claimed to be due is paid by the petitioner - HELD THAT:- Clause D of Hand Book of procedures in respect of para 2.4 of the Export and Import Policy 2002-2007 provides that even the fuel is included as an import under SION, it should not be taken into account while fixing the DEPB rate for such products against which fuel has been allowed as an input. The petitioner has imported fuel under the Advance Licence Scheme and even admittedly he has not imported any other raw material under that scheme. The petitioner has not availed any benefit under the Advance Licence Scheme. Once the petitioner performs export obligation of ₹ 30 crores on the cost of ₹ 2.10 crores which he has incurred for importing fuel, there is no obligation on the petitioner to pay any duty on the said fuel. The petitioner would be entitled to payment of duties under DEPB scheme which he has paid on the raw material used in the manufacture of final product. When admittedly, the petitioner has not imported any raw material other than the fuel under the Advance Licence Scheme, which is excluded as per the amended provision, the net result is the petitioner has not availed any benefit under the Advance Licence Scheme. To avail the benefit of both Advance Licence Scheme and DEPB scheme, the petitioner has to perform the export obligation of ₹ 30 crores which he has fulfilled. The petitioner has purchased the raw material which has gone into use of manufacturing products and therefore, the petitioner is entitled for refund of the said duty paid. If the petitioner opts for duty Drawback Scheme the rate at which he is entitled to the duty drawback is 3% and under DEPB Scheme, he is entitled to 4%. The petitioner availed DEPB scheme which is favourable to him. The Learned Single Judge has rightly held that the petitioner has not imported any raw material other than fuel under the Advance Licence Scheme which is excluded as per the amended provision - Appeal dismissed.
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