TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 166
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....s the excess customs duty paid in respect of the 140 bills of entry but only Rs. 1,11,25,383.83/- was directed to be paid through RTGS and the remaining amount of Rs. 10,95,32,485.41/- was directed to be re-credited to the licences. 2. Artex Textile had filed 140 bills of entry for import of polyster knitted fabrics and non-textured lining cloth from China and declared the transaction value for payment of customs duty. Such declared transaction value was rejected by the assessing group and the assessable value was enhanced. Artex Textile paid the enhanced duty "under protest" both by cash and by debiting DEPB Duty Entitlement Pass Book scrips and cleared the goods. However, as it was aggrieved by the enhancement of the transaction value, it filed an Appeal before the Commissioner (Appeals). Initially the Commissioner (Appeals) remanded the matter to the Assessing Authority for passing a fresh order. The Assessing Authority, however, rejected the transaction value and re-assessed the imported goods. This order was again assailed before the Commissioner (Appeals). This time, the Commissioner (Appeals), by order dated 19 December, 2017, set aside the order of the Assessing Authority ....
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....lant is deprived of his right to get refund, it would lead to the additional burden, which will not be just and proper. In such a scenario, I find that by not allowing refund to be disbursed through RTGS and permitting re-crediting of refund in the licence would amount to denial of such refund, as the Appellant otherwise would not be able to get such sanctioned refunds. It is also a fact, not denied, that the Appellant had paid Customs Duty both in cash and through debiting in the respective licences. 5.6. It is on record that the said licenses through which the customs duty was paid have already expired and are no longer in existence. Therefore, the sanctioned amount of refund, which has been ordered to be credited in the licenses, cannot be implemented in actuality. I find ample force in the appellant's submission that process of re-crediting sanctioned refund in the licence has been discontinued long back; that if due to such procedural obstacles, the Appellant is deprived of his right to get refund, it would lead to the additional burden, which will not be just and proper. 5.7. Therefore, relying upon the Hon'ble High Court in the case of M/s Allen Diesels India Pvt. Ltd.....
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....rms of section 5 of the Foreign Trade (Development and Regulation) Act, 1992. One of the main objectives of the Trade Policy was to improve the declining exports and to boost the same by providing various benefits including that in the form of scrips. Chapter 4 of the Trade Policy provided for a duty remission Scheme called the DEPB Scheme which was aimed to neutralize the incidence of customs duty on import content of the export product. Under the DEPB Scheme, an exporter could apply for credit at notified rates of the FOB Value of the export made in freely convertible currency. As per paragraph 4.3.1 of the Trade Policy, DEPB credit was available against such export products and such rates were specified by Director General of Foreign Trade Director General by way of a public notice. The credit was issued by the Director General in form of scrips/certificates bearing the value of entitlement. 12. To give effect to the aforesaid DEPB Scheme and to grant exemption from payment of customs duties to an importer by utilizing DEPB scrips at the time of import of goods, the Central Government issued a notification dated 11 September, 2009 which governed import of goods by utilizing DEP....
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....tor General of Foreign Trade to the Additional Director General of Foreign Trade wherein information has been provided that re-credit of DEPB scrips may be done. However, learned Counsel appearing for the Respondent has stated that Artex Textile did send a letter dated 22 November, 2019 to the Additional Director General of Foreign Trade for revalidating licences and re-crediting the amount, but in response to the said letter, the Additional Director General of Foreign Trade has informed by letter dated 6 December, 2019 that there is no policy/ provision for revalidating the licences and the amount cannot also be re-credited. 17. The Commissioner (Appeals) had placed reliance on the decision of the Delhi High Court in Allen Diesels. In this petition before the Delhi High Court, the additional duty of customs was exempted if the goods that were imported were meant for subsequent sale under a notification dated 14 September, 2007. However, if special additional duty had already been paid, the notification allowed exemption by way of refund. The importers had paid duty of customs including the additional duty of customs by using the DEPB scrips. The Department did not process the app....
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....Notification No. 102/2007-Customs for availing of the refund, the Department is directed to issue orders granting refund to the Petitioner, as prayed for by it in its four refund applications dated 8th October 2013, 22nd November 2013, 16th December 2013 and 21st December 2014 not later than four weeks from today. The Petitioner's entitlement to interest on the amount of refund will also be considered and granted in accordance with law within the same period of four weeks from today." 18. In this connection, it would also be appropriate to refer to a decision of the Tribunal in MK Agrotech Pvt. Ltd. v/s Commissioner of Customs- Mangalore 2019 (6) TMI 80- CESTAT Bangalore. The issue involved was whether refund could be allowed in cash, if duty was paid through DEPB scrips. The relevant portion of the order of the Tribunal is reproduced below:- "---------- Further I find that both the authorities have wrongly held that refund cannot be paid in cash since the duty was paid through DEPB scrip. The scrips issued by the DGFT are freely tradeable in the open market and this enables exports the facility to encash the export incentives. The holder of the scrip could utilize these sc....