NANKI FASHIONS Vs. COMMISSIONER OF CUS. (EXPORTS)

JUDGEMENT

(1.) Issue notice. Notice is accepted by Mr. Kamal Nijhawan, Sr. Standing Counsel.

(2.) With the consent of the counsel for the parties the matter is heard for disposal. The appellant is aggrieved by an order of CESTAT in Customs Appeal No. C/613/2011-Cus.(DB) by which the Tribunal directed payment of entire duty component. The question of law arising in this case is whether the Tribunal fell into error in holding that the relief under Section 129E was impermissible and that the circular relied upon in this case i.e. No. 16/2009-Cus., dated 25th May, 2009 was in conflict with the Cenvat and duty drawback scheme and also the provisions of the Act and Rules applicable in this case.

(3.) The appellant is a merchant exporter who sources or procures ready-made garments and ships them abroad upon receiving orders. It claimed benefit in terms of the about circular, which had inter alia provided for relief of set off of the duty component available through the prevalent duty drawback scheme. The relevant part of the circular is as follows:-