Case Law Details
Narendra Tea Company Private Limited Vs Union of India & Ors. (Calcutta High Court)
Introduction: The recent case of Narendra Tea Company Private Limited vs. Union of India & Ors., heard in the Calcutta High Court, delves into complex issues surrounding duty drawback claims. The petitioner, a 100% Export Oriented Unit (EOU), challenged an order passed by the Revisional Authority on December 20, 2019, which set aside a favorable decision by the Commissioner of Customs (Appeals), Kolkata. The case revolves around the entitlement of the petitioner to claim duty drawback on bulk tea exports during the period from June 2000 to August 2000.
Factual Background: The petitioner, a 100% EOU, exported 22 consignments of tea during the specified period and claimed duty drawback on Central Excise duty paid on the tea purchases. The claim was made under Section 75 of the Customs Act, 1962, read with the Customs, Central Excise Duties and Services Tax Drawback Rules, 1995, and relevant notifications issued by the Director General of Foreign Trade (DGFT). The entitlement of EOUs to claim drawback at All Industry Rates (AIR) is governed by Chapter 9 of the Foreign Trade Policy.
Key Legal Issues: The main issues presented in the writ petition include:
i. Whether the revisional authority’s order, denying duty drawback to the petitioner, is erroneous in law and fact, particularly in relation to DGFT notifications.
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