Purchaser of Valued Based Advance License is not liable to prove export obligation for availing the benefit of Notification No. 203/92-Customs dated May 19, 1992
Globe Agencies (the Assessee) purchased Valued Based Advance License (VABAL) from the market in respect of exported goods. Since, the Assessee failed to show that input stage credit has not been availed by the manufacturer of the exported (exempted) goods, the benefit of Notification No. 203/92-Customs dated May 19, 1992 (the Notification) which grants exemption to goods imported against VABAL was denied. The Commissioner (Appeals) also upheld the demand of duty of Rs. 3,72,573/- along with interest, fine and penalty. The Assessee being aggrieved by the order of Commissioner (Appeals) filed an appeal before the Hon’ble CESTAT, Mumbai.
The Hon’ble Tribunal relied on the judgment of the Hon’ble Supreme Court in case of Commissioner of Customs (Imports), Bombay Vs. Hico Enterprises [2008 (228) ELT 161 (S.C)], wherein it was held that the purchaser of VABAL is not liable to prove export obligation for availing the benefit of the Notification. Accordingly, the case was decided in favour of the Asses see.