TaxTMI 
TaxTMI 
2020 (1) TMI 906
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....verted into Denim Fabrics through 100% EOU Unit and the said goods are exported out of India. The relevant reasons given by the learned Single Judge in the impugned order are quoted below for ready reference. "11.In my considered view, the ratio of decision of the High Court of Karnataka would very well apply to the facts of the case. The Export Import policy for the relevant year was formulated in exercise of the powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The policy thus has a force of law and it is a statutory policy. In terms of the said policy, more particularly, para 7.17, the petitioner is entitled to drawback. The said para 7.17 reads as follows :- Applicability of Drawback 7.17 The exports made under the DEPB Scheme shall not be entitled for drawback. However, the additional customs duty paid in cash on inputs under DEPB shall be adjusted as CENVAT Credit or Duty Drawback as per rules framed by the Deptt. of Revenue". In cases, where the Additional Customs Duty is adjusted from DEPB, no benefit of CENVAT/Drawback shall be admissible. 12.This benefit which flows from the statutory policy is sought to be denied based ....
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....eal with the Circulars, as was the case before the earlier Division Bench of the Madras High Court and the Karnataka High Court. The citations relied upon by the learned counsel for the Appellants/Revenue are as follows: (i) Director General of Foreign Trade, New Delhi Vs. Mustafa Traders [W.A.No.480 of 2011 dated 02.11.2010 (Kerala High Court)] (ii) Taj Agro Commodities Pvt. Ltd. Vs. Union of India through The Joint Secretary, New Delhi and others [W.P.(L)No.1810 of 2018 dated 03.07.2018 (Bombay High Court)] (iii) Siddhi Vinayak & another Vs. Union of India & others [W.P.No.21438 of 2018 dated 25.10.2018 (Madhya Pradesh High Court)] (iv) Premium Pulses Products Vs. Union of India, [R/ Special Civil Application Nos.16765, 17290, 17573 & 17664 of 2018 dated 19.12.2018 [(Gujarat High Court)] (v) M/s.Hira Traders Vs. The Director General of Foreign Trade, New Delhi and others [W.P.No.15921 to 15924 of 2018 etc. batch dated 04.04.2019 (Madras High Court)] 5.The learned counsel for the respondent/Assessee Mr.P.Sridharan however heavily relied upon the aforesaid two Division Bench Judgments of the Madras High Court and the Karnataka High Court of the same Assessee M/s.Karle In....
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....DTA units for processing by EOU/EPZ units are procured by DTA units on payment of applicable duties and the DTA units shall be eligible for grant of drawback against duties suffered on their inputs which are processed by EOU/EPZ units for the manufacture of goods which are exported in accordance with the Circular No.67 of 1998. 12.2.7. The Constitution Bench of the Apex Court in COLLECTOR OF CENTRAL EXCISE, VADODRA v. DHIREN CHEMICAL INDUSTRIES, [2002] 139) E.L.T. 3 (S.C.) = [2002] 126 STC 122, held that if there are circulars which have been issued by the Central Board of Excise and Customs which place a different interpretation upon the said phrase, that interpretation will be binding upon the revenue. Similar view was taken by the Apex Court in COLLECTOR OF CENTRAL EXCISE, VADODARA v. DHIREN CHEMICAL INDUSTRIES, [2002] 143 ELT 19. 12.2.8. In COMMISSIONER OF CUSTOMS, CALCUTTA v. INDIAN OIL CORPORATION LTD., [2004] 165 ELT 257, the Apex Court held that the circulars issued by the revenue are binding primarily on basis of language of statutory provisions buttressed by need of adjudicating officers to maintain uniformity in levy of tax/duty throughout the country and not on th....
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....terials/inputs imported and used in the manufacture of finished goods, which are exported and not to defeat the same. Hence, we answer the last question of law also in favour of the assessee. 14. Accordingly, the appeal is dismissed answering the questions of law raised in the affirmative, in favour of the assessee and against the Revenue. No costs." (ii) Judgment of the Karnataka High Court reported in 2 012 (281) E.L.T. 486 (Kar.) [Karle International V. Commissioner of Customs, Bangalore ] "In the Circular No.74/99, dated 5-11-1999 dealing with manufacture of goods in EOU Unit as job work and Drawback, it is stated as under: "It has been brought to the notice of the Board that there is a lack of clarity as to who will file the Shipping Bill and where the Shipping Bills of such exports will be assessed. It is clarified that the Shipping Bill in such case will be filed in the name of DTA unit and the name of EOU/EPZ unit will also be mentioned on the Shipping Bill as job worker. In case of job work by EPZ units, the Shipping Bill will be assessed by the Assistant Commissioner in charge of zone, in case of EOU, as the Shipping Bill is filed at the Gateway Port, the Shipping ....
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....d and the textile, ready-made garments, agro-processing and granite sectors undertakes job work from the DTA Units, then the finished products produced by such EOU/EPZ Units will have to be exported directly from EOU/EPZ Unit itself and these goods will not be sent back to the DTA. The reason is obvious. The appellant's product does not belong to EOU. It belongs to DTA and in fact export is done in the name of DTA. Once DTA exports the manufactured goods and if they have paid duty on raw materials, then, under S ection 75 , they are eligible for Duty Drawback. The said right conferred in the statute cannot be taken away by issuing circulars, which runs counter to these statutory provisions. Similarly the Circular 31/2000 where it is stated that under no circumstances the exporter will be allowed to claim All Industry rate, also runs counter to the Act and Rules. However, that Circular makes it very clear that DTA units are eligible for duty drawback. If we look into the scheme of the Rules, it becomes clear that if the Government by notification decides what is public policy known in trade terms as All Industry rate, irrespective of the duty paid on raw materials, the exporte....