Case Details: Nagreeka Exports Ltd. Versus Commissioner of Customs (Port), Kolkata (2025) 27 Centax 1 (Tri.-Cal)
Judiciary and Counsel Details
- S/Shri Ashok Jindal, Member (J) & K. Anpazhakan, Member (T)
- S/Shri Sachin Chitnis & Siddhanth Sriram, Advs., for the Appellant.
- Shri Faiz Ahmed, Authorized Representative, for the Respondent.
Facts of the Case
The assessee, engaged in textile exports, applied for Status Holder Incentive Scheme (SHIS) benefits for the years 2009-10 to 2012-13. However, with the discontinuation of SHIS, the assessee availed the Zero Duty Export Promotion Capital Goods (EPCG) scheme in 2013-14. Subsequently, the Directorate of Revenue Intelligence (DRI) and the Comptroller and Auditor General (CAG) raised objections, citing the Foreign Trade Policy (FTP) 2009-14, which prohibited simultaneous availing of both benefits. To address this, the Directorate General of Foreign Trade (DGFT) Public Notice No. 30/2016 and Central Board of Excise and Customs (CBEC) Circular No. 45/2016 allowed the surrender of one benefit. The assessee relinquished EPCG benefits, deposited duty with interest, and obtained DGFT approval. Despite this, the Commissioner of Customs (Port), Kolkata, denied SHIS benefits and raised a demand. Aggrieved, the assessee challenged the order before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
CESTAT Held
The Hon’ble CESTAT held that the denial of SHIS benefits was legally unsustainable, as the DGFT and CBEC clarifications expressly permitted the surrender of EPCG benefits to avail SHIS. The assessee’s compliance with the prescribed procedure, including duty payment and DGFT approval, rendered the Customs Department’s refusal without jurisdiction. The Tribunal, therefore, quashed the demand and upheld the assessee’s right to claim SHIS benefits.
List of Cases Cited
- Bhushan Power & Steel Ltd. v. Commissioner — 2018 (359) E.L.T. 391 (Tribunal) — Referred [Para 3.1]
- Commissioner v. Danieli India Ltd. — 2023 (386) E.L.T. 754 (Tri. – Chennai) = (2023) 9 Centax 300 (Tri. – Chen.) — Followed [Paras 3.1, 6.3]
- Devtara Industries v. Commissioner — 2022-TIOL-140-CESTAT-Del — Referred [Para 3.1]
- Shoe World (Bajwa) Exports v. Commissioner — 2024 (387) E.L.T. 89 (Tri. – Mumbai) = (2023) 12 Centax 161 (Tri. – Mum.) — Referred [Para 3.1]
List of Departmental Clarification Cited
- D.G.F.T. Public Notice No. 30/2015-20, dated 8-9-2016 [Paras 2.1, 3, 3.2, 6]
- C.B.E.C. Circular No. 45/2016-Cus., Dated 23-9-2016 [Paras 2.1, 3, 3.2, 6]
