2013 (7) TMI 161 - CGOVT - Customs

Government rejects revision application for duty drawback claim on re-exported goods, citing manufacturing criteria under Customs Act.

IN RE : CHEMSPEC CHEMICALS PVT. LTD.

IN RE : CHEMSPEC CHEMICALS PVT. LTD. - 2013 (289) E.L.T. 209 (G.O.I.) Issues:1. Rejection of drawback claim for re-exported goods.2. Interpretation of relevant statutory provisions.3. Application of Chapter Note 10 of Chapter 29 of Central Excise Tariff Act, 1985.4. Compliance with Sections 74 and 75 of the Customs Act, 1962.Detailed Analysis:1. The case involves a revision application filed against the rejection of a drawback claim for re-exported goods. The applicant had imported goods, re-labelled them, and exported them to a foreign buyer, seeking a duty drawback. The jurisdictional Assistant Commissioner rejected the claim, stating it was not maintainable under Section 75 of the Customs Act, 1962. The Commissioner (Appeals) upheld this decision, leading to the revision application before the Central Government.2. The applicant contended that the relabelling of imported goods constituted manufacturing, making them eligible for the drawback claim. They argued that the lower authorities failed to appreciate this aspect and misapplied the statutory provisions. They cited judgments to support their claim that the rejection lacked proper show cause notice and violated principles of natural justice.3. The applicant further argued that the removal of original packing and relabelling should be considered as manufacturing under Chapter Note 10 of Chapter 29 of the Central Excise Tariff Act, 1985. They emphasized that the relabelling was done to make the goods marketable and should be construed as manufacturing, entitling them to the drawback claim.4. The Central Government, after reviewing the case records and relevant orders, noted the dispute over legal interpretations of the applicable statute. The Government analyzed the provisions of Section 75 of the Customs Act, Chapter Note 10 of Chapter 29, and the compliance requirements under Sections 74 and 75. The Government concluded that the relabelling without adding value did not qualify as manufacturing under Chapter Note 10, and the applicant could have availed the drawback benefit under Section 74 if compliance requirements were met. Consequently, the revision application was rejected, upholding the order-in-appeal.In conclusion, the judgment delves into the intricacies of statutory provisions, the concept of manufacturing under Chapter Note 10, and the compliance requirements for availing drawback benefits under the Customs Act. The decision underscores the importance of meeting statutory criteria and the specific conditions for claiming duty drawbacks on re-exported goods.