TaxTMI 
TaxTMI 
2010 (1) TMI 952
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....ted the facts of the case are that M/s. Parthas Exports, Cochin exported 100% Cotton Terry Towels under cover of different shipping bills during the years 1994-96 which covered Cotton Terry Towels, Dyed as well as Undyed. Drawback was originally sanctioned as (a) for dyed terry towels - @ 3% of FOB under sub Sr. No. 2710 which mentioned "Terry Towels, when dyed"; (b) for not delayed terry towels : under sub Sr. No. 2702(5) as "made up articles-all others and under sub Sr. No. 6304(5) as "made up articles made chiefly from textile articles not elsewhere specified. 3. However, subsequently, it was noticed that in terms of a Ministry's Circular F.No. 600/5803/6309/old SS No. 2610, 2710/95-DBK dated 12-8-1996, Terry Towels are not to be t....
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....e remanding the matter, Hon'ble Court clarified that the said direction is without considering the above issue (as to whether terry towels are made ups or not) on merits". 4. Hence, the matter has been taken up for fresh proceedings as per Hon'ble High Court of Kerala's directions and fresh personal hearings were held. During personal hearing held on 7-8-09, the applicant while reiterating their earlier arguments made the following written brief points for consideration : (A) It is relevant to note that during the period prior to that covered by the instant case, the applicant was granted drawback in respect of exports of bleached cotton terry towel by classifying the same under the heading applicable to "Made-up articles made c....
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.... = 2008 (10) S.T.R. 534 (S.C.). Exports effected by the applicant and the drawback claimed preferred by the applicant prior to that cannot be affected by the said Ministry letter. 5. The respondent-Department, during personal hearing held on 14-10-09, while explaining their case submitted that the goods cannot be classified in the heading of made up articles and therefore brand rate has to be got fixed and that the department had issued a Public Notice No. 99/95 dated 20-7-95 intimating the trade that they have to apply for fixation of brand rate (DBK) in respect of these (such) items. 6. Govt. has carefully gone through the records of the case including all the submissions as made by the applicant as well as respondent till thi....
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....rned counsel appearing for the respondents. I have gone through the said letter. Stating that there is no all industry rate of draw back on export of terry towels/terry towelling cloths manufactured on powerlooms or composite mills, the Government of India have in the said letter rejected the request of Sri Sajid A. Gaziani, for classification of such products under the entry 6304(5). Entry 6304 relates to blankets manufactured from yarn in which wool predominates by weight. On a reading of the letter dated 12-8-1996, it is evident that the Government of India have not considered the question whether the cotton terry towels (dyed) fall within entry 6305 relating to "made up articles made chiefly from textile materials and not elsewhere spec....
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....which stated that there was no All Industry rate of drawback as export of Terry towelling cloth/Teerry towels if it is manufactured on Powerloom/Composite Mill. Further it was intimated that at the time of announcing All Industry rates as drawback, vide PN-5/95 dated 15-6-95 and in Press Note it was also specifically mentioned that the rates are being withdrawn as export of Terry towelling cloth and Terry towels. The said letter also states that subsequently Circular No. 67/95 dt. 15-6-95 was also issued in this reference. The matter is examined afresh in the light of observation of Hon'ble High Court. Ministry was requested to examine the matter in terms of High Court observation. Joint Secretary (Drawback) has replied vide letter F.No. 60....