DEPB- Error in classifiation

[Asked by Guest]

Dear Sir,

We had made export under DEPB in the year 2008 to 2011 and got the DEPB license from DGFT .

In between during export It came to notice of Customs Authority that in some product there is

error in DEPB classification , although DEPB rate is same ,for which licenses are already taken

. At the time of registration of the said license department has raised this query and hold the

DEPB license for registration and issue redemption certificate. Department is planning to issue SCN, but the said license is expired under customs custody and till dated department is not issued any SCN.

Now query is that:-

1- Can any export benefits be denied due to technical error ?

2- what are remedies available with us to avail this benefits.

If possible please mentioned related case law and rules and section also.

Regards

AI Summary

Validity of DEPB licences: customs cannot invalidate DGFT-issued licences; challenge and cancellation lie with the licensing authority.
Customs detained DEPB licences over alleged classification errors and proposed show cause notices, but the validity and cancellation of DEPB licences are within the exclusive remit of DGFT; Customs cannot treat DGFT-issued licences as invalid or initiate proceedings challenging them except as strictly permitted by notification, and licence validity is presumed until DGFT cancels it. The advised remedy is to approach the Commissioner of Customs and DGFT with relevant factual records and rely on precedents establishing DGFT primacy.