TMI Blog2022 (7) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant HDPE/P Granules / Chips and petitioner was allowed to procure the same indigenously from Reliance Industries Ltd, Mumbai. The fact that the granules used in the ropes exported had been procured from Reliance Industries Ltd by paying excise duty also is not disputed. The fact that the shipping bills referred to advance licences and that was an error, is also not disputed. It is indisputable that petitioner did not use any HDPE granules procured under the advance licences by direct import but procured the granules from indigenous source, i.e., Reliance Industries Ltd. If that is the factual position, petitioner should be entitled for the drawback. Mr. Jetly in fairness submitted that locally procuring the products on which excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (HDPE). Petitioner obtained four advance licenses in terms of Export Import Policy 2002-2007. In terms of these licenses, petitioner was permitted to import HDPE granules without payment of import duty. Petitioner was under obligation to export Twine /Ropes. Petitioner did not import the raw materials, i.e., HDPE against any of the aforesaid licences. Instead, petitioner got the licences invalidated and procured the HDPE from indigenous suppliers. Copies of corresponding invalidation letters are also annexed to the petition and this is an admitted fact. 3. On the basis of the invalidation letters, petitioner was entitled to obtain raw materials from domestic manufacturers without payment of excise duty. Suppliers, while effecting supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance licences and also indicated that shipping bills were filed under DEEC cum-Drawback shipping bills. This is an indication that the exports were made against the advance licences which was a factual error. Mr. Sridharan submitted that the fact that it is a factual error also cannot be disputed because there were no advance licences in force, the same having been invalidated. Mr. Sridharan says that due to oversight of petitioner the error was not detected earlier and, therefore, no steps were taken within the time prescribed for correcting / amending the shipping bills. Mr. Sridharan says on a comprehensive reading of the show cause notice and impugned order, it is clear that the sole reason for issuance of show cause notice was this er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roposed to recover drawback amount sanctioned to petitioner. Mr. Sridharan submitted that the General Notes speaks for itself but the fact in the case at hand is that export was not made in discharge of export obligation under advance licences because the advance licences for direct import had been made invalidated admittedly and petitioner was allowed to procure and admittedly procured the HDPE granules from Reliance Industries Ltd and used those granules in manufacturing of ropes which were exported. Therefore, what we have to only see is that whether petitioner correctly claimed the drawback. Petitioner s submissions were rejected by respondent no.4 by an order dated 2nd February 2009 who confirmed the demand of Rs.32,55,509/- being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed on 20th December 2011, it is mentioned it was also observed that in the present advance licences, against which the goods were exported, were issued under Notification No. 43/02/Cus dated 19th April 2002 which exempted all duties of Customs on import of inputs used for the manufacture of export product. The exempted material in the present case for the export product is HDPE granules. As per the licence conditions direct import of inputs was not permitted and petitioner procured the inputs indigenously from Reliance Industries Ltd. Therefore, it is indisputable that petitioner did not use any HDPE granules procured under the advance licences by direct import but procured the granules from indigenous source, i.e., Reliance Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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