ROLEX RINGS PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) These petitions arise in common background and involve similar facts. We may refer to the facts as arising in Special Civil Application No. 2756/2017.

(2.) The petitioners have challenged an order dated 16-12-2016 passed by the Principal Commissioner of Customs, Mundra, by which he held that the product manufactured and exported by the petitioners would be correctly classifiable under Item No. 428 of Depb Schedule as 'Bearing Races' and not under Item No. 68B of the Depb Schedule as 'Alloy Steel Forging (Machined)'. Consequently, he confirmed the duty demand of 1,63,00,000/- (rounded off) with interest and penalties. He also imposed personal penalties. This order the petitioners have challenged directly before the High Court primarily on the ground that this very product manufactured and exported by the petitioners was at the centre of dispute between the department and the petitioners in the context of Duty Drawback Scheme. The Customs, Excise and Service Tax Appellate Tribunal in such litigation ruled in favour of the petitioners holding that the product is not Bearing Races but is Alloy Steel Forging (Machined). The petitioners would point out that judgment of the Tribunal was confirmed by the Supreme Court in the appeal filed by the department. According to the petitioners, therefore, without there being any material change, the departmental authority cannot take a different view and drive the petitioners to further litigation.

(3.) Brief facts are as under. The petitioners are engaged in manufacturing and exporting of various goods. One of the items so manufactured and imported by the petitioners, ran into controversy with the department in the context of duty drawback benefits made available by the Government of India with effect from 1-10-2011. The petitioners contended that the product in question was Alloy Steel Forging (Machined) classifiable under Entry No. 732616 of the Duty Drawback Schedule. This would enable the petitioners to claim drawback at the rate of 5%. Whereas, the department contended that the product in question was Bearing Races falling under Entry No. 848221 of the same Schedule for which duty drawback prescribed was at 2%. The adjudicating authority having held against the petitioners, the issue was carried in appeal before the Tribunal. The Tribunal in case of Shri Rolex Rings Pvt. Ltd. v. Commissioner of Customs, Kandla reported in 2016 (335) E.L.T. 69 (Tri. Ahmd.) decided the issue in favour of the petitioners. The Tribunal referred to various documents including the certificate dated 25-7-2000 issued by the Chartered Engineer in which it was clarified as under :