Case Law Details
In re Endress+Hauser Flowtec (India) Pvt. Ltd (CAAR Mumbai)
In a recent case concerning duty drawback, the Customs Authority for Advance Rulings (CAAR) in Mumbai has refrained from providing a ruling. The case involved M/s. Endress+Hauser Flowtec (India) Pvt. Ltd., seeking clarification on whether duty drawback could be claimed on the import of parts of calibration rigs subjected to retrofitting operations before export.
The applicant, Endress+Hauser Flowtec, intended to import the measuring sections of second-hand calibration rigs, perform retrofitting operations on them in India, and then re-export them. They sought clarification on their eligibility to claim duty drawback under Section 75 of the Customs Act, 1962, read with the Customs and Central Excise Duties Drawback Rules, 2017.
Endress+Hauser Flowtec argued that their case fell under the purview of the Customs Authority for Advance Rulings, citing relevant sections of the Customs Act. However, CAAR found that the question at hand did not fit within the parameters outlined for seeking advance rulings.
The CAAR’s decision hinged on the interpretation of the relevant clauses of the Customs Act, particularly Section 28H(2)(d), which outlines the scope of questions eligible for advance rulings. The CAAR emphasized that the provision is specific to matters concerning the applicability of notifications related to taxes or duties under the Customs Act or the Customs Tariff Act, 1975.
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