2013 (1) TMI 283

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....the basis of purchase orders placed with them by foreign companies. Such exports were made in proportion to imports and export proceeds were realized in foreign exchange. However, the shipping bills which were filed in connection with the exports were "drawback shipping bills" instead of "DEEC shipping bills" and the same did not contain any reference to the applications submitted by the assessee to the Joint DGFT for issue of advance licences. All the exports were made during 1992-94. Later on, the Commissioner of Customs issued show-cause notice dated 31.3.1997 to the assessee and their Senior Manager on the basis of the results of investigations conducted by the DRI, (a) proposing to deny the benefit of Notification No.204/92-Cus. dated ....

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.... of value of Rs.26,21,216/- involving proportionate duty liability of Rs. 11,17,067/-. He submitted that, if the payment of Rs.5/- lakhs was adjusted towards this liability, only an amount of Rs.6,17,067/- remained to be paid as duty. He submitted that there was no dispute regarding the exports made by the assessee or the proceeds realized in foreign exchange. It was also not in dispute that any drawback was not sanctioned on the shipping bills. Merely because the shipping bills were inadvertently filed as drawback shipping bills, the customs authorities did not make necessary entries in the DEEC book and, consequently, the assessee could not obtain Export Obligation Discharge Certificates (EODCs) from the Joint DGFT who issued the advance ....

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....n the remanded proceedings, however, the adjudicating authority appears to have placed the entire burden of proof on the assessee by overlooking the fact that they could not obtain EODCs from the Joint DGFT due to the inaction on the part of the customs authorities in making the necessary entries of exports in the DEEC book. 5. It is on record that, though the shipping bills were filed as drawback shipping bills, the assessee did not press any claim of drawback and no drawback was sanctioned either. Only their claim under DEEC scheme was pursued. Accordingly, the assessee exported their final products and realized proceeds in foreign exchange. It is not in dispute that they discharged a major part of their export obligation under the DEE....