Case Law Details
Crown Milk Specialities Private Limited Vs Commissioner of Customs (CESTAT Chandigarh)
The case of Crown Milk Specialities Private Limited Vs Commissioner of Customs (CESTAT Chandigarh) pivots around the conversion of shipping bills from Drawback to DEPB Scheme. The primary point of dispute was whether the shipping bills filed under the Drawback Scheme could be converted to the DEPB Scheme as per the Customs Act, 1962. The case provides crucial insights into the legal framework governing export schemes and elucidates the scope of shipping bill conversions.
Background: Crown Milk Specialities Pvt Ltd is engaged in the manufacture of Milk Products and exported its products to Germany. The company initially filed shipping bills under the Drawback Scheme with a 1% drawback rate. Later, it realized that it was entitled to export under the DEPB Scheme at a rate of 9%.
Rejection by Lower Authorities: The initial application for conversion was rejected by the authorities, relying on the older Circular No. 04/2004 dated 16.01.2004. This decision was further upheld by the Ld. Commissioner (Appeals) of Central Excise, Customs, Chandigarh.
Appeal and New Circular: In the appeal, it was pointed out that the Circular No. 04/2004 dated 16.01.2004 had been substituted by Circular No. 36/2010 dated 23.09.2010, which permits conversion from one scheme to another. Moreover, both the schemes have similar levels of examination.
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