2025-VIL-669-GUJ-CU
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CUSTOMS High Court Cases

Customs - Section 2(15) of the Customs Act, 1962 – Scope of term ‘duty’ - Duty Drawback on CVD & Cess – Petitioner imported capital goods and paid Customs duties including Basic Custom Duty (BCD), Countervailing Duty (CVD), and applicable Cess and availed CENVAT credit on these duties as per the CENVAT Credit Rules, 2004. The petitioner later re-exported the goods and filed for duty Drawback under Section 74 of the Customs Act, 1962 - Whether the petitioner is entitled to drawback on the BCD only or on the total duties paid, including CVD, Cess, etc. – HELD - As per Section 2(15) of the Customs Act, 1962, "duty" means the duty of customs leviable under the Customs Act only, and not the additional duties like CVD, Cess, etc. payable under other statutes - The petitioner is entitled to drawback on the Basic Custom Duty only, and not on the other duties paid. In terms of definition of "duty" under the Customs Act and the provisions of Section 74 which refer to "any duty paid", the drawback is limited to the BCD – Further, the petitioner had already availed CENVAT credit on the other duties, and allowing drawback on those would amount to double benefit - the impugned order is modified and the respondent are directed to recompute the duty drawback allowable to the petitioner considering only the BCD paid, and after determining the relevant period for the purpose of applying the drawback rates under Notification No. 23/2008-Customs – The petition is disposed of - Whether the Revisionary Authority was justified in remanding the matter to the original adjudicating authority to determine the period between the date of clearance for home consumption and the date of re-export for the purpose of applying the rates under Notification No. 23/2008-Customs – HELD - As per Section 74(1)(i) of the Customs Act, the drawback is available only when the goods are "entered for export" and the proper officer makes an order permitting clearance and loading of the goods. Therefore, the period has to be calculated from the date of clearance for home consumption to the date when the goods were placed under customs control for export - The Court upheld the decision of the Revisionary Authority to remand the matter to the original adjudicating authority to determine the relevant period for applying the drawback rates under Notification No. 23/2008-Customs.
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