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TMI Blog2006 (9) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... of the petitioner is that it is entitled to drawback duty under: Note (II) if he avails the facility of Quantity Based Advance License Scheme and permitted to import other embellishment also in the manufacture of knitwear. The specific case of the petitioners is that they were granted Quantity Based Advance License for import of MAC Gregor Hang Tags, MAC Gregor Main Label, Care and content Label and they imported Top Hanger 18" (Plastic sizer hook) and Size Tabs with Black Wording. The contention of the petitioners is that the hangers are used for adornment of the export garments, hence it is an embellishment, as it is for the purpose to display the garments to make it more attractive, hence it should be duty free. 8. The grievance of the petitioner is that the third respondent without assigning any reason rejected the case of the petitioner, whereas the second respondent observed that the embellishment is an item used for adorning and rejected the case of the petitioner. The petitioner is challenging the same. 9. The respondents filed detailed counter affidavit. It is stated in the counter that petitioners are entitled for drawback only if their case is covered wider Note (II). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "In case the exporter avails the facility of Quantity Based Advance License under DEEC Scheme and is permitted to import other embellishment also, other than zips snap fasteners, labels and tags and not any other item duty free. For use in the manufacture of knit mentioned against above SS. No. The exporter shall be allowed drawback @ 3% (Three percent only) of the F.O.B Value only". A plain reading of the above drawback policy clarifies that it gives a right to take drawback to the extent stated in the Note II. 14. Knitwear and articles of hosiery including readymade garments made wholly or mainly from knitted/hosiery fabrics of cotton and! or Cellulosic yarn, the rate of draw back is 7.5% in the above read Sl. No. 2704. 15. With regard to Note (II), if the importers avail the facility of Quantity Based Advance License under the scheme, he is permitted to import other "embellishments" (emphasis supplied) other than Zips, Snap Fastners, Labels and Tags and no other items duty free in using manufacturers of knitwear. 16. The forceable contention of the learned counsel for the petitioner is that the hangers which were imported in order to export hosiery comes under other embel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nger is only at the time of sale of the garment and not at the time of manufacturing of the garment. During the course of argument it is clarified that the hangers are not part of the garments even while computing All Industries Rate of drawbacks. 22. In the instant case the petitioner has imported the hangers separately under DEEC Scheme without payment of any duty. It is admitted case that the object of the scheme is to encourage the export to get more and more foreign money and thereby India will develop, in order to achieve this purpose a policy has been introduced by the Government that the goods manufactured by the ex porter should satisfy the needs, for selling the same, in the foreign market, thereby they must maintain the standard on the international market to satisfy the foreign buyer. In this process the scheme permits import of certain items which are used in the manufacture of goods for the purpose of exports. Therefore the object of the scheme is to permit import of the particular items which will be used in the manufacture of the goods for the purpose of the export. Sl. No. 2704 to be noted that the word embellishment is used in that context. When any item which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of that Case. Each case will be decided on the basis of the contents of the notification and the nature of the policy and, the provisions. The petitioner did not cite any direct decision concerning with importing and exporting of hangers to be used for manufacture of the knitwear. 29. The other contention of the learned counsel for the petitioner is that the appellate authority has powers for alternative remedy, therefore the power of appellate authority should be exercised to accept his alternative arguments. It is no doubt that the power of appellate authority is restricted and it is not an absolute power but subject to some statutory restrictions and certain limitations. The contention of the petitioner is that he is prepared for payment of duty for the hangers and his case may be tansferred to other schemes so as to use the hangers along with the knitwear. This plea was rejected by the appellate authority on the ground that such plea was never raised at the initial stage or before the adjudication at the original stage. It is also observed that the appellate authority did not have the power to accept the new ground at the appellate stage. The learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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