9911796707
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Issues:
1. Demand of drawback amount under Customs Act and Drawback Rules. 2. Confiscation of goods and imposition of fines and penalties. 3. Application for waiver of predeposit and stay of recovery. Analysis: 1. The Commissioner of Customs demanded a drawback amount from the exporter under the Customs Act and Drawback Rules. The exporter had exported stitched garments and received the benefit of drawback. A show cause notice was issued alleging over-invoicing and failure to produce evidence of realization of sale proceeds within the statutory time limit. The Commissioner imposed fines, penalties, and confiscated the goods. The exporter sought waiver of predeposit and stay of recovery. 2. The senior advocate for the exporter argued that all sale proceeds were realized, and evidence was produced. The over-invoicing allegation was disputed as goods were cleared for export after due verification. The advocate contended that the Department should have followed procedures for recovery under Rule 16A. Reference was made to a Tribunal decision supporting the exporter's position. The advocate also challenged the penalty imposition under Section 114 of the Customs Act since exports were completed. 3. The Department opposed the submissions, stating that investigations can continue even after exports are completed. Recovery of drawback amount and penalties can be made as per the law without a time limit. The Department cited judgments supporting their stance, emphasizing the authority to penalize exporters even post-export completion. 4. The Tribunal analyzed the relevant provisions of law. Rule 16 allowed the Department to recover drawback for over-invoicing, while Rule 16A outlined procedures for recovery. The Tribunal noted that the Department did not follow Rule 16A requirements, and there was a delay in producing bank remittance certificates. The Tribunal found a prima facie case for the exporter, granting waiver of predeposit and stay of recovery for drawback amounts and penalties.
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