MAALVIKA IMPEX Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE petitioners seek an order quashing and setting -aside of the order of the Joint Secretary, Department of Revenue, Govt. of India dated 13.08.2012.

(2.) THE facts of this case are that the petitioners are merchant exporters of readymade garments. During the course of assessment proceedings, they relied upon Circular No. 54/2001 -Cus dated 19.10.2001 and Circular No.16/2009 -Cus dated 25.05.2009, which according to them enabled theRule 3 setting -off of the duty element in respect of the inputs purchased from the open market. In the assessment proceedings as well as the revision which led to the impugned order, the contentions urged by the petitioners were turned down. It consequently has approached this Court for setting -aside of that order.

(3.) THE petitioners have in these proceedings relied upon a decision of this Court ­ Commissioner of Customs (Export) v. Kultar Export 2013 (288) ELT 187 (Del). The Court had then examined the very same issue, i.e. the permissibility of benefit of duty element in the cost of inputs of such merchant exporters. The Court had considered the relevant Circulars dated 64/1998 dated 01.09.1998; 54/2001 -Cus dated 19.10.2001 as well as another Circular No. 08/2003 over and above Circular No.16/2009 -Cus. In that case, this Court had affirmed the decision of Tribunal which had inter alia held as follows: