Case Law Details
Lupin Limited Vs Commissioner of Customs (CESTAT Delhi)
Conclusion: Since the appellate authority had failed to examine issue of customs duty exemption Notification No. 45/2017-Cus., which provided different levels / measures of exemption benefits to the re-imported goods depending upon which export benefits, like duty drawback, rebate etc., the therefore, matter need to be remanded on the applicability of the exemption notification and whether the appellant was entitled to any benefit in terms thereof.
Held: Appellant was a SEZ unit, engaged in manufacturing and export of pharmaceutical products for which they procured some input goods from DTA unit. Since certain input goods remained unutilised, the appellant supplied back the said goods to the DTA on payment of duty under protest. Accordingly, they filed the refund application amounting to Rs. 36,65,884/-. The show cause notice was adjudicated whereby the refund claim was rejected being not admissible under the provisions of Special Economic Zone Act, 2005 read with the Customs Act, 1962. Revenue contended the provisions of rule 47 of SEZ Rules read with section 30 of SEZ Act any goods removed from SEZ to DTA were chargeable to Customs duties. The issue which arose for consideration was whether the goods removed from SEZ to DTA (initially procured from DTA) were chargeable to customs duties in terms of section 30 of SEZ Act, 2005 read with rule 47 of SEZ Rules, 2006. It was held that appellant had raised the contention that he had been wrongly denied the benefit of the exemption Notification No. 45/2017-Cus., which provided different levels / measures of exemption benefits to the re-imported goods depending upon which export benefits, like duty drawback, rebate etc., were availed and subject to several conditions. It was observed that it had been dispatched on payment of Central Excise duty and drawback too have been claimed, however, the appellate authority had failed to examine the issue of exemption benefit under the said notification in detail, giving specific reasons. Therefore, the matter need to be remanded on the applicability of the exemption notification and whether the appellant was entitled to any benefit in terms thereof.
FULL TEXT OF THE CESTAT DELHI ORDER
Challenging the Order in Appeal No IND-EXCUS-000-APP107-2022-23 dated 02.03.2023 whereby the Commissioner (Appeals) dismissed the appeal, the appellant has filed the instant appeal.
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