2013 (12) TMI 1466 - CGOVT - Customs

Recover of already sanctioned drawback - failure to submit the Bank realisation certificate in prescribed format as a proof of realisation of export sale proceeds - Held that - Despite prolonged litigation applicant has not produced the documentary evidence for realisation of export sale proceeds in the prescribed format of Bank realisation Certificate and still insisting that nowhere said format is prescribed and documentary evidence submitted by them may be accepted. - in the C.B.E. & C. Circular dated 2-2-2009, a system for in house monitoring mechanism to monitor the realisation of such proceeds of exports made under drawback scheme was devised. It nowhere stated that Bank Realisation Certificate is not to be submitted as proof of realisation of export sale proceeds. - DGFT has prescribed Bank Realisation Certificate for all exports under drawback scheme in format Appendix 22A (Form I). The said format is amended vide DGFT Public Notice No. 9 (RE 2010) 09-14, dated 7-9-2010. In said Bank Realisation Certificate details like Invoice No., SB No., Bill No., Bill amount, date of realisation of export proceeds, etc., are required to be mentioned. There is no relaxation from submission of BRC in said format. Applicant had sufficient opportunity to submit the BRC in prescribed format but they failed to fulfil their statutory obligation. Therefore, the order for recovery of drawback claim cannot be faulted with. - Decided against Assessee.

Summary

Issues:
Recovery of drawback amount, non-realization of export proceeds, submission of Bank Realization Certificate (BRC), appeal rejection, revision application under Section 129DD of Customs Act, 1962, prescribed format of BRC, documentary evidence for realization of export sale proceeds, C.B.E. & C. Circular 5/09-Cus., negative certificate by Chartered Accountant, Bank Realization Certificate format, statutory obligation for submission of BRC.

Analysis:

1. Recovery of Drawback Amount:
The case involves the recovery of a sanctioned drawback amount due to non-realization of export proceeds within the stipulated period. The lower authority ordered the recovery of the drawback amount along with interest and imposed a penalty after due process of law.

2. Submission of Bank Realization Certificate (BRC):
The applicant failed to submit the Bank Realization Certificate in the prescribed format as proof of realization of export sale proceeds. Despite relying on a negative certificate issued by a Chartered Accountant, the applicant did not provide the required documentary evidence in the specified format.

3. Appeal Rejection and Revision Application:
The Commissioner (Appeals) rejected the appeal filed by the applicant, leading to a revision application under Section 129DD of the Customs Act, 1962 before the Central Government. The revision application was based on the grounds related to the acceptance of documentary evidence and the format of the Bank Realization Certificate.

4. Prescribed Format of BRC and Documentary Evidence:
The Government noted that the applicant insisted on the acceptance of documentary evidence submitted by them, arguing that the prescribed format for the Bank Realization Certificate was not explicitly required. However, the authorities emphasized the necessity of submitting the BRC in the specified format for monitoring the realization of export sale proceeds.

5. Statutory Obligation for Submission of BRC:
The Government highlighted the statutory obligation for exporters to provide evidence of the realization of export proceeds within the specified period. The failure to submit the Bank Realization Certificate in the prescribed format led to the rejection of the applicant's claim for the drawback amount.

6. Final Decision:
After reviewing the case records and the orders passed by the lower authorities, the Government upheld the impugned Order-in-Appeal, finding no fault in the decision to recover the drawback amount. The revision application was deemed devoid of merits and subsequently rejected.

This detailed analysis of the judgment highlights the key issues surrounding the recovery of drawback amount, the submission of documentary evidence, and the significance of complying with the prescribed format for the Bank Realization Certificate in customs proceedings.