Commissioner of Customs Vs K.G. Denim Ltd (CESTAT Chennai)
CESTAT Chennai upheld the order directing fixation of brand rates of duty drawback for drawback of duties suffered on inputs used in exports of cotton denim fabrics as no efforts made by revenue to negate the findings of appellate authority.
Facts- The assessee was engaged in the manufacture and export of cotton denim fabrics, was availing the facilities of both brand rate of duty drawback scheme as well as DEPB scheme. Assessee filed three applications for fixation of brand rate of duty drawback for the drawback of duties suffered on inputs used in the exports made during the year 99–2000.
Thereafter, a show cause notice dated 14.03.2012 was issued by the Commissioner of Customs and Central excise, indicating therein to reject the application filed by the assessee for the reasons inter alia that they had not furnished proof of duty paid inputs declared in DBK III and IIIA statements, they had calculated the yarn consumption for a particular export based on SION which is nothing but a mere arithmetical reverse calculation and not the actual quantity of duty, paid inputs, etc.
Post reply from the assessee, the Commissioner directed for the fixation of brand rates of duty drawback. Aggrieved by the said direction, the revenue has preferred the present appeal.
