TaxTMI 
TaxTMI 
2024 (6) TMI 137
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.... holding company and supply the same in India. During the earthquake in Nepal, several heavy machines were required to be sent to Nepal. This contract was given by Korea International Corporation Agency (KOISA) to Doosan Infracore Company Limited, Korea (holding company). They in turn have sent Supply Contract to the subsidiary companies (present Appellants) to supply these goods directly to Nepal. The entire value of the machinery supply was to be reimbursed by the holding Company by way of foreign exchange. The Appellants had suffered Customs Duty at the time of import of capital goods. Therefore, when these were supplied to Nepal, the Appellants wanted to claim drawback and wanted to file "Drawback Shipping Bills". However, they were not....
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....ods; or [(aa) if any such goods are exported under claim for drawback to any place in Nepal, Bhutan and Myanmar] for supplies to projects financed by any United Nations Agency or the International Bank for Reconstruction and Development or the International Development Association or the Asian Development Bank or any other multilateral agency of the like nature and for which payment is received in freely convertible currency:] (b) if any such goods as are specified in the Annexure below (hereinafter referred to as the "capital goods") are exported under claim for drawback to any place in Nepal against any global tender invited by His Majesty's Government of Nepal and for which payment is received in Indian currency ....
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.... Notification NO. 208/1077-Cus (NT) dated 01.10.1977 has been amended vide notification no. 13/2011-Customs (NT) dated 24.02.2011, vide which in paragraph 2, before the Explanation, the following proviso has been inserted, namely: - "Provided that no drawback shall be allowed if the goods exported were imported into India from third countries and exported to Nepal." 17. Further, Circular No.14/2011-Customs dated 15.03.2011 also mandated that the exporter shall declare on the body of the shipping bill under claim of drawback that the goods being exported to Nepal have not been imported into India from third country. 18. I find that there is no dispute that the subject exported goods was of third country origin good....
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.... 4. The Learned Counsel submits that the Adjudicating Authority is in error in coming to a conclusion on the ground that the goods in question were part of (b) of the Notification No. 208/1977-Cus. dated 01/10/1977 as amended time to time. He submits that their goods would fall either under (a) or (aa) of this Notification since the entire funding has been done by international agency and the payment has been received in free convertible agency. He submits that the Adjudicating Authority has erroneously interpreted the 'Explanation' as a part of the Notification's main part, whereas this 'Explanation is part of Annexure 2 of the Notification. Therefore, this Explanation would be applicable only in case the goods in question fall under Para ....
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....favour of Indian exporters for the value of such goods; or (aa) if any such goods are exported under claim for drawback to any place in [Nepal, Bhutan and Myanmar] for supplies to projects financed by any United Nations Agency or the International Bank for Reconstruction and Development or the International Development Association or the Asian Development Bank or any other multilateral agency of the like nature and for which payment is received in freely convertible currency. (b) if any such goods as are specified in the Annexure below (hereinafter referred to as the "capital goods") are exported under claim for drawback to any place in Nepal against any global tender invited by His Majesty's Government of Nepal and for wh....