TaxTMI 
TaxTMI 
2018 (9) TMI 1737
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....er and exporter of polypropylene mats. During 2007, the petitioner exported 50,776.730 kgs of polypropylene mats along with 374.031 kgs of packing material under Duty Free Import Authorization (DFIA) scheme and issued with a license bearing SL.No.3510020104/3/26/00, dated 27.12.2006. As per SION - H229, the petitioner was allowed to import 61,952.000 kgs of polypropylene granules as raw materials and 378 kgs of Polypropylene granules as packing material in terms of para 4.4.6 of Foreign Trade Policy 2004 - 2009, without payment of basic customs duty, additional customs duty, education less, antidumping and other safeguards, if any. The license was valid for a period of 24 months. No Cenvat facility was available for inputs either importe....
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....r as refund by the exporter is not at all envisaged. Hence, aggrieved by the order passed by the third respondent, the petitioner has preferred an appeal before the 2nd respondent. The second respondent, by his order dated 04.06.2009, passed in Appeal No.58 of 2009 has dismissed the appeal holding that the petitioner has not produced any valid evidence to prove that M/s.Petro Plast Industries Ltd, namely importer has taken Cenvat Credit or their buyers have taken any Cenvat Credit since the drawback has to be reduced on the basis of the credit so taken. Aggrieved by the order passed by the 2nd respondent, the petitioner has preferred a revision petition before the 1st respondent. The first respondent has dismissed the revision petition, ....
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....s shall be restricted to the credit already availed. It is the contention of the petitioner that irrespective of the fact whether the importer had availed Cenvat Credit or not, he is eligible for the reimbursement. If the Additional Customs Duty was refunded as claimed by the petitioner, then the petitioner will get this amount as refund/drawback and the importer M/s.Petro Plast Industries Limited, Chennai will get the same amount as Cenvat Credit, which will result in doubt benefit. The petitioner has not produced any document to the effect that the importer viz., M/s.Petro Plast Industries Limited, has not availed Cenvat Credit of duty paid on the goods imported against the said DFIA License. Therefore, the respondents have rejected th....
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....yment of applicable additional customs duty / excise duty. While endorsing transferability, authorization would bear a note as to liability of such additional customs duty / excise duty. Such additional customs duty / excise duty would be reimbursed to exporter as drawback in case of local sales by excisable unit, CENVAT credit would be equal excise duty already paid." 5. It is submitted that thus, as per Foreign Trade Policy, such additional customs duty / excise duty would be reimbursed as drawback and in case of local sales, CENVAT Credit would be equal to the excise duty already paid. (Additional Customs Duty (CVD) is the Excise Duty). It is not that such duty would be reimbursed to exporter as drawback and they are eligible for C....
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....igible for Cenvat Credit, if sold locally or shall be claimed as drawback if used in exports. 9. The petitioner had made a claim of drawback of the Additional Customs Duties paid by the transferee unit - M/s.Petro Plast Industries Limited before the third respondent. Rule 3(c) of the Rules allows drawback of duty paid on inputs only, when the credit of duty of the inputs are not availed. The third respondent issued a notice seeking documents / evidences to show that the Additional Customs Duty paid on the goods imported under license are not availed and to satisfy the condition in Rule 3(c). Since the petitioner did not submit any document to satisfy Rule 3(c), the refund was rejected. 10. It is the contention of the petitioner that t....