In a writ petition filed against the Revisionary Authority, the Division Bench of the Bombay High Court (HC) Justice Nitin Jamdar and Justice Gauri Godse made the determination that the petitioner’s goods, including any circuit breakers or switchgears, are entitled for drawback at rates of 4% and 3.6%. Additionally, the court ordered the Commissioner of Customs (Appeals) to reconsider its decision.
The Petitioner is a manufacturer of circuit breakers and switch gears of high voltage and exported the goods under ten shipping bills.
The Petitioners claimed draw back at the rate of 4% on FOB value under S.S.No. 85.37 of the Drawback Schedule.
Concerning issues made over shipping bill drawback claims, the petitioner wrote to the Deputy Commissioner of Customs. He explained the principal purpose of circuit breakers and mentioned that the petitioner’s manufactured and exported circuit breakers fall under S.S.No. 85.37 and are eligible for a 4% tax deduction.
Circuit breakers and switchgears did not fall under entry S.S. No. 85.37, but rather S.S. Nos. 85.35 and 85.36, according to a message the petitioner received from the Commissioner of Customs Export with the subject “Query/Deficiency noted against drawback claim.”
Further stated that the goods will only get a draw claim of 3.2 % and 2.7% as it falls under S.S. No. 85.35 and 85.36.
The bench examined the second assertion made by the petitioner’s counsel, according to which the interpretation of S.S.Nos. 85.35 and 85.37 regarding the products in question is erroneous and does not take into account the actual language of the entries.
The Coram noted the prior order of the Commissioner (Appeals) inter parte regarding the same product, where different classification and the debatable order have been attained, and which supports the Petitioner’s contention that the same should have been taken into consideration and that doing so has irreparably damaged the Petitioner.
The bench quashed and set aside the impugned orders of both Commissioner of Customs(Appeals) and also the Revisionary authority. Further restored all the files to the Commissioner of Customs (Appeals).
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
