M.F. Rings & Bearing Races Ltd. vs Commissioner Of Customs & Anr. on 6 May, 2016

1. The controversy involved in the present petitions relates to denial

of duty drawback on „Flanges‟ manufactured by the Petitioners, by the

process of forging, and exported from the country. The Petitioners claim

that Flanges manufactured by them and exported during the period 10th

December, 2002 to 6th April, 2003 are covered under SS No. 73.29 under

Chapter 73 of the Table of Drawback Rates 2002-03 (hereafter

„Drawback Schedule 2002-03‟) notified by Custom Notification No.

33/2002 (NT) as amended by Notification No. 80/2002 (NT) dated 10th

December, 2002 and the Flanges exported by them after 6th April, 2003

till 30th June, 2003 are covered under SS 73.28 of the Table of Drawback

Rates 2003-04 (hereafter „Drawback Schedule 2003-04‟) as notified by

Notification No. 26/2003 (NT). The Respondents contest the claim as

according to them, Flanges are manufactured by using low grade steel

and are, therefore, not covered under SS No. 73.29 or SS No. 73.28 for

the purposes of grant of duty drawback. The Respondents state that the

duty drawback rates have been computed on the basis of the data

W.P.(C) 5118/2003 & Other Connected Matters Page 3 of 32
provided by the Forgings Panel of the Engineering Export Promotion

Council (EEPC), which did not contain any data regarding Flanges and,

therefore, duty drawback at the rates fixed by the Central Government is

not available for export of forged Flanges.

Source: Indian Kanoon

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