Non export of goods by eou

[Himansu Sekhar]

Kindly give suggestions to a query.

An eou has sent goods for export. Due to some reasons, the goods are not exported within six months. Also the goods were lost in the port. The eou had sent the goods under ARE1s with due acknowledgements of the department. Through out the period they have positive NFEs. The eou wants to pay thecex duties at the usual rate and as per the values mentioned in the ARE1s. But the department insists to pay the duties alongwith customs duties. Also they want the pay the duties at the value at the nearby price of the similar goods imported.

Kindly suggest the property methods

[KASTURI SETHI]

Dear Querist,. Your responsibility ceases when goods left Indian Waters after due signature from Customs Authorities. In such a situation apply for remission of duty. It. Your responsibility is up to Indian port. Case law can be easily searched on website. Make efforts

[Himansu Sekhar]

Thank you sir. There is no time limit for claiming the remission. But the remission under rule 21 is within the factory. Though the judicial decisions are in favour other assessee considering the place of removals is extended up to the port,still the assessee wants to pay the duties. I could not find any case law for such a situations. Whether normal excise duty is applicable as assessed in Ares since the nfe is positive or customs duty is applicable.kindly suggest

[KASTURI SETHI]

Custom duty is also involved I.e.inputs

imported free of duty. Where the goods were lost ? In the port ? In Indian Waters or beyond ?

[KASTURI SETHI]

Dear Querist,

This case law will be helpful to you.

ROSHANLAL LALIT MOHAN Versus COMMISSIONER OF C. EX. & CUS., DELHI-III = 2008 (8) TMI 323 - CESTAT, NEW DELHI
 

[KASTURI SETHI]

Dear Sir,

Pl. give me full details and I can post more case laws in your favour.

[KASTURI SETHI]

Dear Querist,. As you have imported raw material free of duties, so you can not lodge claim of duties from Insurance Co. Only option is to apply remission of custom duties under Section 23 of Custom Act. You can also file Application for remission of CE duty under Rule 21 of CE Rules. This rule is not meant for remission within factory only. You will have to apply for remission of both types of duties.

[Himansu Sekhar]

Sir,

Let me clarify the issue in detail

The assessee is an EOU and manufactures the excisable goods.

Over the years they were sending the goods for export through ARE-1s.

During audit, it was found that the proof of exports of certain ARE-1 were not submitted. Further it was found that the goods were lost during transportation and in the port.

Since the EOUs are governed by the CEX procedures, the remission is applicable for the goods lost before removal, the Department insisted for duty.

For the entire period the assessee has positive NFE

My query is at what rate the duties will be payable i.e whether at normal rate or at the aggregate of customs duties?

Also what will be valuation i,e whether the value mentioned in the ARE-1 or the value at which the simillar goods are imported.?

[KASTURI SETHI]

Pay CE duty mentioned on ARE-I and nothing else.

AI Summary

Remission of duties where EOU exports fail and goods are lost, with excise payable per ARE 1 acknowledged value. An EOU sent goods under ARE 1 that were not exported and were lost in transit or at the port; the principal question is whether liability is limited to excise duty as assessed on ARE 1 or extends to customs duties and import parity valuation. Advisers recommended applying for remission of both customs and excise duties and assembling export acknowledgements, while noting departmental insistence on customs recovery when inputs were imported duty free; one advisor concluded excise payable per ARE 1.