Export benefit entitlement: Customs cannot cancel Let Export Orders or deny DEPB while licensing authority scrips remain valid.

Customs authorities may verify export declarations but cannot cancel Let Export Orders or deny DEPB benefits while valid DEPB scrips issued by the licensing authority remain unmodified; determination, modification or cancellation of DEPB entitlement is within the licensing authority's domain and suspected irregularities should be referred to that authority. Reassessment powers under the self-assessment regime permit verification of live consignments and declared assessments but do not authorise reopening or reassessing goods after export once shipping bills were assessed and Let Export Orders issued. Commissioner-led suo motu cancellation without proper revisionary procedure exceeded authority.

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Issues: Whether the Customs authority could cancel Let Export Orders and reassess/export consignments and deny DEPB benefit without the DGFT having cancelled or modified the DEPB scrips; and whether reassessment under Section 17 of the Customs Act, 1962 is permissible for goods already exported.

Analysis: The Tribunal examined the legal framework governing export benefit determination and reassessment: DGFT is the licensing authority empowered to grant, modify or cancel DEPB scrips and thus to determine entitlement to DEPB rates; Customs authorities may verify declarations but cannot unilaterally deny or modify DEPB benefit while a valid DEPB scrip remains subsisting. The Tribunal observed precedent establishing that Customs must refer suspected irregularities to the licensing authority rather than substitute its own decision on eligibility. The Tribunal analysed Section 17 and related provisions as amended for self-assessment and concluded that reassessment under Section 17 applies to live consignments or to verify self-assessment in accordance with the statutory scheme, and does not authorise reopening or reassessing goods after export where the shipping bills were assessed and Let Export Orders issued. The Tribunal also noted that cancellation of Let Export Orders by the Commissioner without exercising proper revisionary procedure under Section 129D, and without DGFT action on the referred scrips, was beyond the respondent's authority.

Conclusion: The Customs authority acted without jurisdiction in cancelling Let Export Orders and directing reassessment and confiscation in respect of the exported goods while valid DEPB scrips issued by DGFT remained unmodified; reassessment under Section 17 could not be validly ordered for goods already exported and Let Export Orders could not be suo motu cancelled by the Commissioner in the absence of DGFT action.

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