TaxTMI 
TaxTMI 
2022 (7) TMI 1628
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....itlement Certificate (DEEC) Scheme bearing No P/L/1525115 dated 19.03.1993 permitting them to import materials to be used for manufacture of goods which are to be exported. As per said license, the Appellants were allowed to import goods to the tune of Rs. 29,16,99,000/- (INR) / USD 1,02,35,160 of CIF Value. As per the terms of said license, The appellants were required to fulfill the export obligation amount at FOB value of Rs. 68,56,81,500/- (in USD 2,40,59,000/-). When issuing the VBAL Licenses, the USD and INR amounts are indicated as per the exchange rate prevalent at that time. When goods are imported, the VBAL book is debited as per the exchange rate prevalent at that time of each Bill of Entry. This is a case where, if the....
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....of the aforesaid three Bills of entry. The same was deposited for an amount of Rs. 65,29,653/- however under protest because the appellant had balance in its license in terms of USD to cover those imports. 4. The aforesaid decision of the Department on imposition of duty was challenged by the appellant before Commissioner (Appeals), Vishakapatnam along with seeking relief of adjusting the balance of any free convertible foreign currency certifying and that duty free benefit for three of Bills of Entry which were filed for clearance for Sea Water Magnesiten may be extended. Commissioner (Appeals) vide Order-in Appeal No. 70/2006 dated 5.10.2006 set aside the decision as being violative of principles of natural justice and remand....
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....eputy Commissioner of Customs in December, 1994 for converting the debits from Indian Rupees to freely convertible foreign currency with the request that balance value could be arrived in USD. It is further mentioned that pursuant to the appellants request, Assistant Commissioner vide order dated 26.12.1994 had converted all the debits from Indian Rupees to US dollars and arrived at the balance value as Rs. 29,02,076.33 INR/ 10,81,430.24 USD. 7. The Appellants further has placed reliance on the Policy Circular No. 42 (RE-2008)/2004-2009 claim 20.11.2008 issued by the Directorate General of Foreign Trade, India. It is submitted that said circular clarifies that for the purpose of clearance of imported items against the advance a....
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....at other entries in the said debit sheet were reflecting such amounts in INR and corresponding USD. The conversion rate in accordance with the Notification No. 67/94 Cus (NT) dated 29.11.1994 was USD - 31.55 INR. The adjudicating authority below have confirmed the demand based on these observations solely. Hence there is no infirmity in the Order under challenge. 9. Learned Departmental Representative has further impressed upon that after the above credits the balance in Rupees is Rs. 71,31,176/- and in USD it is 12,15,474, in the VABAL scrip as on 16.03.1995. If the credit Rs. 29,02,076/- to USD 10,81,430 on 26.12.1994, is considered correct in Dollar value, then the value of VABAL License works out to Rs. 4,69,31,75....
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....le confirming the demand of duty on the assessable value of goods covered under three Shipping Bills No. 801 and 802 both dated 30.3.2000 and 822 dated 31.3.2000, has based the decision on the sole ground that the amount of Rs. 29,02,076 INR /10,81,430 USD as shown in the debit sheet on 26.12.1994 was factually incorrect, as there could be no conversion of USD @ R.2.683 on the relevant date. Another ground taken by Commissioner (Appeals) is that the appellants in past also had debited the license in terms of Indian Currency only and had never raised any objection with respect to this transaction. The objection with respect to impugned Bills of Entry that the balance paid was of the value of imported goods covered under those Bill ....
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.... if remittance of foreign exchange is covered by CIF value of authorisation shown in freely convertible currency." It is clarified that for the purpose of clearance of imported items against the advance authorization/DFIAS, imports would be allowed as per the balance CIF value in freely convertible currency irrespective of the fact as to whether the CIF value of imports had exhausted in the said authorisation in terms of Rupee. This is subject to other conditions of the Authorisation. This issues with the approval of DGFT." 13. A bare perusal makes it clear that it is the balance CIF value in freely convertible currency which is relevant for the purpose of clearance of imported items against the advance authorization. T....