2025-VIL-346-GUJ-CU
  1. Home
  2. 2025-VIL-346-GUJ-CU

CUSTOMS High Court Cases

Customs - Duty Drawback, Rule 19(2) of Central Excise Rules, 2002, Conditions for Drawback Eligibility - Petitioners were engaged in the export of agricultural products, including De-Oiled Cake, as merchant exporters - Petitioners exported de-oiled cake and claimed a Drawback calculated at a rate of 1% of the FOB value. The de-oiled cake was procured from various oil manufacturers (suppliers) who were engaged in the manufacture of oil and de-oiled cake through a solvent extraction process, utilizing Hexane as the solvent, and sold the de-oiled cake to the petitioners - DGCEI alleged that the Suppliers had manufactured the de-oiled cake by claiming the benefit of Rule 19(2) of the Central Excise Rules, 2002, by purchasing Hexane without payment of Central Excise duty, and the petitioners had improperly claimed the Duty Drawback - Whether the petitioners are eligible for the Duty Drawback on the export of de-oiled cake, given that the Suppliers had utilized duty-free Hexane under Rule 19(2) of CER, 2002 for the manufacture of the de-oiled cake – HELD - the issue of duty drawback of 1% of FOB on the export of de-oiled cake from hexane on which the excise duty was not paid by the suppliers had been specifically gone into and adjudicated upon by this Court in M/s. Dewas Soya Limited vs. Union of India & Ors. case - In Dewas Soya it was categorically held that the duty drawback relates only to the customs portion and not to the excise portion and therefore, the exporter did not get any double benefit in the facts of the said case - the petitioners were eligible for the Duty Drawback as the rate of drawback was 1% of the FOB value, which relates to the customs portion only and not the excise portion – Further, the show cause notices were issued between 2010-2011 but were adjudicated in 2022, which was an inordinate delay - the show cause notices quashed and set aside – The petitions are allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Credit Notes ITC Reversal in IMS…
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?