M/S. Sunbeam Auto Pvt. Ltd vs C.C. New Delhi (Icd Tkd)

[Arising out of Order-in-Original No. 026-2014 dated 18.07.2014 by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Delhi].

For approval and signature:

Honble Shri Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

M/s. Sunbeam Auto Pvt. Ltd. .Appellants

Vs.

C.C. New Delhi (ICD TKD) .Respondent

Appearance:

Shri Alok Arora, Advocate for the Appellants

Shri R. Khanna, DR for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing: 27.04.2015

FINAL ORDER NO. 51589/2015-CU(SM)

Per Ashok Jindal:

The appellant is in appeal against the impugned order denying the request of conversion of free shipping bills to drawback shipping bills.

2. The facts of the case are that the appellant was an 100% EOU. They asked for debonding and the range superintendent as per letter dated 24.01.2012 took the cutoff date and asked the appellant to pay the duty on inputs, work-in-progress, finished goods and capital goods lying in stock on said date. Thereafter no due certificate was issued on 27.02.2012. Final bonding was done on 07.03.2012. The appellant filed the request for drawback of conversion of 17 shipping bills on 16.05.2012 for the exports made during the period 24.01.2012 to 07.03.2012. The request for 14 shipping bills against which the goods were exported during the period 24.01.2012 to 27.02.2012 was denied. Against the said order appellant is before me.

3. The Ld. Counsel for the appellant submits that the Ld. Adjudicating Authority has allowed the conversion of shipping bills to drawback shipping bills during the period 27.02.2012-07.03.2012 but denied the remaining shipping bills on the premises that as the appellant has got no dues certificate on 27.02.2012. He further submits that in fact the cutoff date was fixed on 24.01.2012. On the said date whatever capital goods, work-in-progress, inputs and finished goods were lying in stock the appellant has paid duty thereon. Therefore, all the shipping bills which were filed during the period 24.01.2012-07.03.2012 when the final debonding was issued the conversion of shipping bill be allowed.

4. On the other hand Ld. AR oppose the contention of the Ld. Counsel and submits that the Ld. Commissioner has rightly denied the conversion of shipping bills to drawback shipping bills as the conversion of drawback scheme requires rigorous examination of the goods. Admittedly, same has not been done in this case as the goods were exported under free shipping bills. Therefore, conversion cannot be allowed.

5. Heard the parties. Considered the submissions.

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6. In the impugned order the Ld. Commissioner has denied the conversion of shipping bills for the period 21.01.2012-27.02.2012 on the premises that no dues certificate has been obtained by the appellant only on 27.02.2012. I have examined the issue. On examination of the issue I find that the cutoff date was fixed as 24.01.2012 and appellant was directed to pay duty on capital goods, inputs, work-in-progress and finished goods lying in their stock on that date. Therefore, any export made by the appellant after the said date cannot be considered as the same has been exported as 100 % EOU and same view has been taken by this Tribunal in the case of Ginni International Ltd. Vs. CC-2014 (301) ELT 649 (Del). Therefore, I hold that the appellant is entitled for conversion of shipping bills to draw back scheme w.e.f. 14.01.2012  07.03.2012. Moreover, case laws relied upon by the Ld. AR in the case of Cargil India Pvt. Ltd. Vs. CC Visakhapatnam-2014 (299) ELT 290 (AP) is not applicable to the facts of this case as in that case it was not the issue which is cutoff date. In these circumstances, I hold that the appellant is entitled for conversion of shipping bills from free shipping bills to drawback scheme during the period 24.01.2012-07.03.2012 for all industry date of duty drawback. In these circumstances, impugned order is set aside qua denial of shipping bills and appeal is allowed.

(Dictated and pronounced in the open court.)

(Ashok Jindal) Member (Judicial)

Bhanu

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E/52229/2014-EX(SM)