2018 (7) TMI 451

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....2011 for Mild Steel Stranded wire classifiable under tariff item No.7312 04. A show cause notice dt. 23.05.2014 was issued proposing to reject the payment of duty drawback amounting to Rs. 3,36,814/-. The adj. auth. confirmed the demand of Rs. 3,36,814/- along with interest. By the impugned order, the Comm(A) upheld the adjudication order. Hence the present appeal. 3. Heard both sides and perused the appeal records. 4. The ld. Counsel for the appellant submitted that the show cause notice was issued in respect of Bills of Export No. 20/EXP/FB/DBK/11- 12 dt. 01.02.2012, 17/EXP/FB/DBK/12-13 dt. 13.09.2012 and 18/EXP/FB/DBK/12-13 dt. 19.09.2012. The adjudicating authority proceeded on the basis of different Bills of Entry. 5. The appellant ....

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....au.) (4) M/s. Eveready Industries India Ltd. v. CESTAT, Chennai [2016-TIOL-676-HC-MAD-CX = 2016 (337) E.L.T. 189 (Mad.) (5) CCE, Tirupathi v. Panyam Cements & Minerals Industries Ltd. [2016 (331) E.L.T. 206 (A.P.). He further submitted that the appellants have fulfilled all the substantial requirements and are eligible for refund under Notification No. 17/2009-S.T., dated 7-7-2009. He further submitted that the condition of realization of sale proceeds as stated under para 4 of the said Notification has to be read in consonance with the provisions under FEMA, 1999. He further submitted that as per Section 8 of the FEMA, 1999 which provides for such realization, when any amount of foreign exchange is due or has accrued. The phrase "foreig....

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....foreign exchange realization does not arise as the exported goods are free replacement of defective goods. He also submitted that the appellants are eligible for availing CENVAT credit of service tax paid on the courier agency services received and the entire exercise is revenue neutral. In support of this submission, he relied upon the following decisions: (1) CCE, Ahmedabad v. Sucheta Metals Ltd. [2009 (246) E.L.T. 326 (Tri.-Ahd.) (2)Zenith Spinners v. UOI [2015 (326) E.L.T. 97 (Guj.)]. On the other hand learned AR defended the impugned order and submitted that the Assistant Commissioner, Mysore has erroneously sanctioned the refund vide order-in- original dated 10-8-2009 and 15-2-2010 as the appellants have not fulfilled the conditio....