2019 (6) TMI 649

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er M/s. Bishan Saroop Kishan Agro Industries (P) Ltd., and the connected Appeals in C.M.A.Nos. 1811 7 1813 of 2019 have been filed by the exporter M/s. Big Bags International Private Limited and C.M.A.No. 1820 of 2019 has been filed by Shri Ravish Kamath. 2. The appellants are aggrieved by the Order dated 16.03.2018 passed by the learned CESTAT whereby the learned CESTAT held that the exporter M/s. Big Bags International Private Limited was not entitled to custom duty draw back at higher All Industry Rate (AIR rate) for the reason that for the bags purchased by it, which were manufactured by M/s. Bishan Saroop Kishan Agro Industries (P) Ltd., the said manufacturer M/s. Bishan Saroop Kishan Agro Industries (P) Ltd., had availed Cenvat credi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the rate of duty drawback payable to the merchant exporters. The relevant para of the circular relied by the appellant is reproduced as below:- "7. In view of the above, the Board has decided to accept the recommendation of the Drawback Committee in this regard. Thus merchant exporters who purchase goods from the local market for export shall henceforth be entitled to full rate of duty drawback (including the excise portion). However, such merchant exporters shall have to declare at the time of export, the name and address of the trader from whom they have purchased the goods. They shall also have to declare that no rebate (input rebate and also the final product rebate) shall be taken against the Shipping Bills under which they are exp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export products." The term "Cenvat credit has not been availed" has been explained to mean that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export products. This is evidently in relation to the manufacture of the goods which in the present case is manufactured by M/s. Bishen Saroop Ram Kishen Agro Pvt. Limited. Since the manufacturer has availed the benefit of Cenvat credit and the same is not in dispute, we are of the view that the appellant will not be entitled to the excise portion of AIR. In view of the above, we find no reason to interfere with the impugned ord....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the learned Tribunal. The purpose of allowing the reduced duty draw back in the hands of the merchant exporter unless he fails to satisfy the authorities of the department that no CENVAT facility has been availed by the manufacturer in respect of the goods exported by the merchant exporter, is to avoid a double benefit in the hands of the exporter/manufacturer of those goods. The duty draw back is allowed for giving incentive to the export to the extent of Excise component only to the extent of Excise duty actually suffered by the goods in question. If the Cenvat credit is availed by the manufacturer of such goods, in respect of Excise duty paid on the raw materials or inputs for manufacture of those goods, then the duty draw back is li....