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Issues: Whether the petitioner was entitled to refund or drawback of additional customs duty paid by the transferee under the transferred DFIA licence, in the absence of proof that CENVAT credit had not been availed.
Analysis: The claim was examined in the light of paragraph 4.4.6 of the Foreign Trade Policy 2007-2008 and Rule 3(c) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. The policy contemplated reimbursement of additional customs duty or excise duty as drawback, while the drawback rules restricted such relief where credit of the duty on inputs had already been taken. On the facts, the petitioner sought refund of duty paid by the transferee, but did not produce material showing that the transferee had not availed CENVAT credit. The Court also accepted the respondent's position that allowing both drawback and credit would amount to double benefit, and that the benefit under the transferred licence did not survive in favour of the transferor in the manner claimed.
Conclusion: The petitioner was not entitled to the refund or drawback claimed, and the rejection of the claim was upheld.
Final Conclusion: The writ petition failed because the claimed duty reimbursement could not be granted without satisfying the restriction against availing credit and receiving drawback on the same duty burden.
Ratio Decidendi: Where drawback rules restrict relief to cases in which CENVAT credit has not been availed, a claimant seeking reimbursement of duty paid under a transferred DFIA licence must establish non-availment of credit, and drawback cannot be granted so as to confer a double benefit.
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