100% EOU Procuring Excise Duty and Bulk Tea from Manufacturer entitled for Benefit of Drawback: Calcutta HC [Read Order]

The Calcutta High Court granted benefit of drawback to 100% Export Oriented Unit (EOU) procuring excise duty and bulk tea from the manufacturer.

The main issue is that whether on the facts and in the circumstances of the case impugned order of the revisional authority is erroneous both in law and in facts and indisregard to the Notification No. 39(RE-01)/1997-2002, New Delhi dated 22nd November, 2001 issued by the DGFT by holding that the petitioner being 100% EOU could not claim duty Drawback on bulk tea in question procured by it from the bulk tea manufacturer and supplier which has admittedly paid the Excise Duty and that it is the supplier which is only entitled to claim duty Drawback and not the petitioner in spite of the fact that the said bulk tea manufacturer has not claimed the Duty Drawback on such deemed export which took place within the period from 01.06.2000 to 31.03.2001.

The Petitioner submitted that it isa 100% Export Oriented Unit (EOU), exported 22 consignments of tea during the period from June 02, 2000 to August 26, 2000 and claimed duty drawback on Central Excise duty paid on purchases in question, under Section 75 of the Customs Act, 1962 read with the Customs, Central Excise Duties and Services Tax Drawback Rules, 1995, Foreign Trade Policy and the relevant notifications issued by the Director General of Foreign Trade.

It was further submitted that the petitioner being a 100% EOU which exports tea, sought duty drawback in accordance with the said Notifications and the duty drawback amount of Rs.10,23,000/- was duly granted to the petitioner by the department.

A Single Bench of Justice Md Nizamuddin observed that “Admittedly petitioner is an 100% Export Oriented Unit (EOU). Admittedly petitioner has procured bulk tea from the manufacturer which has paid Excise on such goods and has not claimed Drawback. Admittedly deemed Export took place between the period 01.06.2000 to 31.03.2001.”

“Revisional authority while passing the impugned order on the revisional application of the respondents customs authority setting aside the order of the Appellate authority which had allowed drawback in favour of thepetitioner, has taken into consideration the ground which was no part of show cause notice or adjudication order or order of the Appellate authority” the Court noted.

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