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2022 (2) TMI 211 - AT - CustomsDuty Drawback - Advance Licences for Duty-free import of goods - drawback for 50% of FOB value - failure to discharge export obligation - Section 75 of the Customs Act, 1962 - HELD THAT:- Section 75 of the Customs Act, 1962 allows Duty drawback on the imported materials that were used in the manufacture of goods which are exported. Here in the case on hand, it is the case of the appellant that the appellant did not use the imported materials in the manufacture of the exported goods since the date of the Advance Licences were much later. In the statement of facts in the appeal memorandum, the appellant has given licence numbers along with dates - The requirement of Section 75 is the ‘use’ of the imported materials in the export of manufactured goods, which is seriously disputed by the appellant, which aspect has to be properly brought on record. There is also nothing on record as to whether the imported goods under the Advance Licences in question were actually seized, because the Order-in-Appeal refers to a different Advance Licence of a different date altogether. The benefit of Section 75 ibid namely the drawback should be allowed of duties of Customs chargeable under Customs Act cannot be denied as the benefit of duty drawback is allowable on the imported goods used in the manufacture of goods which are exported. Revenue has nowhere disputed the fact of export made by the appellant. Hence, the impugned order is contrary and not in accordance with the scheme of the statutory provision as provided under Section 75 ibid - there is no justification or logic in adopting the drawback for 50% of FOB value which is also not as per Section 75 ibid and by virtue of this also, the impugned order is a non-speaking order. The impugned order is not sustainable since the same is not in accordance with the letter and spirit of the provisions of Section 75 of the Customs Act, 1962 and hence, the matter is required to be remitted back to the file of the Commissioner for passing a fresh speaking order considering the observations and after giving sufficient opportunities to the appellant - Appeal allowed by way of remand.
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