TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 36
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....ted time. The issue involved is of collection of export duty on the petitioners' re-export of such imported raw sugar during the period between 16-6-2016 and 5-7-2016. 3. With effect from 1-3-2011 raw sugar, white sugar or refined sugar were placed in the Second Schedule to the Customs Tariff Act at Sr. No. 9A inviting 20% of export duty. The Government of India had issued an exemption notification dated 1-3-2011 exempting various products from payment of export duty. Raw sugar, white or refined sugar did not found place in this exemption notification. However, the Government of India issued a later notification dated 1-3-2013 amending the said exemption notification dated 1-3-2011 by virtue of which raw sugar, white or refined sugar were added in the exemption notification inviting nil duty. Thus, from 1-3-2013 export duty on raw sugar, white sugar or refined sugar was fully exempt. 4. It appears that in the months of May and June, 2016, due to shortage in the domestic market, local sugar prices were surging. To control the local sugar prices therefore, the Government of India decided to withdraw the exemption of duty on export of sugar. We would refer to the materials....
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....ding to the petitioners, these representations yielded a positive result promptly when the Government of India issued a notification dated 6-7-2016 adding entry 63 in the exemption notification dated 1-3-2011 exempting sugar exported against a valid advance authorization from payment of entire export duty, of course, with certain conditions. 7. Such notification dated 6-7-2016 though substantially redressed the grievances of the petitioners, it failed to satisfy their full requirement, since the period between 16-6-2016 when the exemption was withdrawn and 6-7-2016 when such exemption was re-introduced in case of sugar exported against valid advance authorization was not covered. The petitioners therefore made further representation dated 15-7-2016 to the Director of Revenue Intelligence. In such representation, the petitioners contended as under : "(7) During the period between 16 June, 2016 and 21st June, 2016, white sugar was exported after granting clearance from the Customs. This shows that, nobody was aware of such notification, including customs and CHA. May be under bona fide belief that white sugar, which was manufactured out of the imported raw sugar, been exp....
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.... short-gap of time between the two notifications was left uncovered. This, according to the petitioners, was a pure oversight and the exemption notification dated 6-7-2016 should therefore be treated as clarificatory or curative in nature. 9. Appearing for the petitioners, learned counsel Shri Paresh Dave took us to the materials on record to contend that the withdrawal of the exemption from payment of duty on export of sugar was solely with a view to control the rise in the price of sugar in the local market. This being the sole purpose, there was no need to withdraw the exemption on re-export of the sugar. When the petitioners pointed out such error to the Government, appropriate exemption notification was issued. This would further demonstrate that there was a pure oversight in withdrawing the exemption qua the export of sugar imported against advance authorization. Counsel pointed out that the very fact that the Government of India accepted the petitioner's representation and issued a fresh exemption notification covering this small class of exporters would clearly indicate that at the very outset, there was no intention of collecting duty on such exports. Counsel relied ....
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....tation and in fact, acting on such representation issued a later notification dated 6-7-2016 reintroducing exemption from payment of entire export duty on export of sugar imported against advance authorization. This exemption notification reads as under : 1 2 3 4 "63 1701 Sugar exported against a valid Advance Authorization issued by the Regional Authority that is to say the Director General of Foreign Trade appointed under Section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant an authorization under the said Act subject to the conditions that : Nil" (a) Exports are effected in proportion to the import of raw sugar against the said Advance Authorization; (b) Advance Authorization holder has not got the said Authorization invalidated; (c) Advance Authorization holder has not procured raw sugar from the domestic market; (d) At the time of clearance of export consignment at port, the exporter submits a copy of the bill of entry as documentary proof of import of raw sugar under the said Advance Authorization to the jurisdictional proper officer of customs. 14. Thus, with effec....