2007 (10) TMI 46

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... disposed of. Accordingly, after dismissing the present application for stay, we proceed to deal with the appeal. 2. The appellant had imported raw materials under an advance licence (DEEC) and cleared the same duty-free under Customs Notification No. 43/2002. They could not discharge their export obligation within the appointed time. However, they could discharge it within the period extended b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bank guarantees and (b) the claimant was not entitled to refund as they did not challenge the encashment of bank guarantees. The refund claimant has filed the present appeal on a few grounds. 3. It is submitted by the appellant that they are entitled to refund of the amount on the strength of the DGFT's certificate of fulfilment of export obligation. It is submitted that, as the encashed amounts....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... guarantees can be treated as duty is no longer res integra. The Hon'ble Supreme Court, in the case of Oswal Agro Mills (supra) held that bank guarantee furnished by the assessee to secure the Revenue did not amount to payment of excise duty. In the case of Lucas TVS Ltd. (supra), this Tribunal held to the same effect in relation to an amount realized by the Revenue through encashment of bank guar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the DGFT. The lower appellate authority has placed undue emphasis on these aspects to deny refund to the party. We are of the view that the refund sanctioned by the original authority on the strength of the certificate of DGFT cannot be disturbed on flimsy grounds such as those raised in the impugned order. As rightly pointed out by learned counsel, in view of the decision of the apex court in....