CESTAT | No proof of export of goods lying in stock, at the time of debonding; Tribunal allows appeal directing refund

Customs, Excise & Service Tax Appellate Tribunal (CESTAT): Anil Choudhary (Judicial Member) allowed an appeal which was filed on the ground that in the facts and circumstances and the documents produced, there could not be any doubt about export of finished goods which were lying in stock on the date of debonding.

The counsel submitted that appellant had submitted complete documents for verification namely – copy of ER-I, copy of shipping bill, copy of export promotion invoice, copy of bill of lading. Further, the goods were exported soon after debonding and admittedly duty have been paid on such goods at the time of debonding.

The Tribunal found that the appellant had exported 448 units of handicraft on 30-07-2015, within a week after the date of debonding being 27-07-2015 when only 153 units were lying in stock. Thus, the refund claim have been rejected on presumptions and assumptions that such 153 units may not have been included in the exported units as there has been further production of 448 units on 28 and 29-07-2015. Such presumption was drawn without any adverse finding or any adverse material on record. It was held that the appellant had exported 153 units lying in stock on the date of debonding. Accordingly, the impugned order was set aside. It was further held that appellant was entitled to refund of the duty of Rs.7,22,290/- relying on the Division Bench of this Tribunal in Parle Agro (P) Ltd. v. Commissioner –CGST-2021-TIOL-306-CESTAT-All. It cannot be conclusively proved that they have exported the goods which were lying in stock, at the time of debonding.[Sun Art Exporter v. Commr. Of CGST, 2021 SCC OnLine CESTAT 347, decided on 01-07-2021]


Suchita Shukla, Editorial Assistant has reported this brief.

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