1993 (8) TMI 88

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....6-5-1991 have inter alia stated that there was no cause for review as no adjudication on facts had taken place; that the order of the Assistant Collector was arbitrary and against principles of natural justice as no opportunity for personal hearing was given; that affixing of label (supplied free of charge by buyer abroad) was not an activity connected with the manufacture and hence out of the purview of Rule 3(1) of the Customs and Central Excise Duty Drawback Rules, 1971; that the Appellate Authority had rightly remanded the case to the original authority for determining whether FOB value of the goods, included the value of the label or hot. According to the respondent this was essential as drawback was claimed on FOB value and they had n....

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....f the extant Drawback Schedule. In the shipping bills they had given declaration to the effect that the imported labels which were earlier cleared duty free under Customs Notification No. 150/80 were affixed on the goods exported. The original authority while sanctioning drawback deducted from the drawback so sanctioned the duty which was foregone on the imported labels which were fixed on the exported goods as per the provisions of sub-rule 1 of Rule 3 ibid. The Appellate Authority while upholding the original authority's finding that fixing of label was manufacturing activity and duty so foregone on the labels was rightly deductible under Rule 3(1) ibid, however, remanded the case to the original authority for verifying whether the value ....

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....der any of the provisions of the Customs Act, 1962 (52 of 1962), and the rules made thereunder, or of the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty paid or the rebate, refund or credit obtained. Provided further that no drawback shall be allowed. (i) .......... (ii) If the said goods are produced or manufactured using imported materials or excisable materials in respect of which duties have not been paid; Or (iii) ......... Notification No. 150/80 "In exercise of the power.....Central Government.......... hereby exempt tag or lables (whether made of paper, cloth or plastic)........ when importe....