Date of ‘Let Export Order’ is date for Determining Rate of Customs Duty: CESTAT [Read Order]

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) observed that the date of ‘let export order’ is the date for determining rate of customs duty.

The duty was paid as per the rate prevalent on the date the ‘Let export order’ was issued, the benefit of reduction in the rate of duty cannot be extended to the goods and accordingly, the refund was rejected. However, the Commissioner ( Appeals ) in the impugned order taking into consideration the date of loading of the goods into the vessel as the relevant date, allowed the refund claim. Aggrieved by this, Revenue is in appeal against the impugned order.

The Authorised Representative on behalf of the Revenue submitted that the Commissioner was wrong in considering the date of sailing of the vessel as the relevant date while the laws prescribed the date of ‘Let export order’ as the relevant date and accordingly, requested for setting aside impugned order allowing their appeal.

The relevant Sections to determine the rate of duty is Section 16 read with Section 50 of the Customs Act ,1962. The reliance placed on Section 18 and 19 of the Customs Act, 1962 by the Commissioner (Appeals) is irrelevant as far as determination of rate of duty is concerned. As per Section 16, the date of ‘let export order’ is the date for determining the rate of duty. This view is also upheld by the High court of Bombay in the case of Narayan Bandekar & Sons Pvt. Ltd. Versus Commr. of Cus. & C. EX, Goa.

A Two-Member Bench comprising PA Augustian, Judicial Member and R Bhagya Devi, Technical Member relied on the judgment in Commissioner of C. EX., CUS. & S.T., BBSR-I Versus Kashvi Power & Steel (P) Ltd, wherein it was observed that “In terms of clear legal provisions of Section 16 read with Sections 50 and 51 of the Customs Act, 1962, we find that the impugned order has been passed in line with the said legal provisions. We find no force in the present appeal by the Revenue to persuade as to interfere with the findings of the Commissioner ( Appeals ). Accordingly, the appeal is dismissed.”

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