2018 (9) TMI 194 - AT - Customs

Utilizing DEPB Scrips for Duty Payment: Timing Irrelevant. Legal Precedent Upheld.

Commissioner of Customs, Jamnagar Versus M/s. Reliance Industries Limited

The Appellate Tribunal CESTAT Ahmedabad upheld the permissibility of utilizing DEPB scrips for payment of duty in cash at the time of final assessment for ... Whether, in respect of differential duty payment at the time of final assessment, in a case of imports, clearances made under advance authorization by debiting from the DEPB scrips, is permissible or otherwise? Held that:- Identical issue decided in the appellant own case, C.C. JAMNAGAR VERSUS RELIANCE INDUSTRIES [2018 (8) TMI 1027 - CESTAT AHMEDABAD], where it was held that The only requirement is that at the time of payment of duty, the DEPB scrip should be produced for debit therein - appeal dismissed - decided against Revenue. Issues Involved:Whether the payment of differential duty at the time of final assessment, in the case of imports, by debiting from the DEPB scrips used for clearances made under advance authorization is permissible or not.Analysis:The Appellate Tribunal CESTAT Ahmedabad considered the issue of differential duty payment at the time of final assessment in cases of imports where clearances were made under advance authorization by debiting from DEPB scrips. The Tribunal referred to a previous order dated 25.07.2018 in the appellant's own case where it was established that the DEPB scheme could be utilized as payment of duty in cash, as held by the Hon'ble Madras High Court and upheld by the Supreme Court. The Tribunal emphasized that at the time of finalization of assessment, whether duty is paid by cash or by debit of DEPB scrips is considered equivalent. It was further clarified that even if DEPB scrips were purchased from the open market, they could still be used in lieu of cash payment for duty without the need to establish correlation with the timing of obtaining the DEPB license. Therefore, the period of obtaining the DEPB license was deemed irrelevant as long as the DEPB scrip was produced for debit at the time of duty payment. The Tribunal concluded that there was no infirmity in the impugned order and upheld the decision, dismissing the Revenue's appeal based on the precedent set by the earlier judgment.In summary, the Tribunal reaffirmed that the utilization of DEPB scrips for payment of duty in cash was permissible, following the legal precedent established by the Hon'ble Madras High Court and the Supreme Court. The Tribunal clarified that the timing of obtaining the DEPB license was not a relevant factor, as long as the DEPB scrip was presented for debit at the time of duty payment. Consequently, the Tribunal upheld the impugned order and dismissed the Revenue's appeal based on the principles laid down in the earlier judgment.