2010 (7) TMI 805 - CGOVT - Customs

Drawback claim - supplementary Drawback Claims under Rule 15 of Drawback Rules - claims rejected as time-barred Held that - During such time-periods nobody stops his business activities and one has to make alternative arrangements for smooth functioning of their official work. Govt. does not find this plea of personal/ busy schedule of the respondent as a valid reason so as to bind the Customs Authorities to act as per the convenience of individual exporter - revision application of revenue thus succeeds

Summary

Issues:
- Delay in filing supplementary Drawback Claims under Rule 15 of Drawback Rules
- Legal validity of reasons for delay - late receipt of bank statement and being busy in trade tours
- Interpretation of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995
- Compliance with Public Notice No. 44/96 dated 27-8-1996
- Consideration of grounds for condoning delay
- Applicability of legal provisions in case of delay in filing claims

Analysis:

Issue 1: Delay in filing supplementary Drawback Claims under Rule 15 of Drawback Rules

The case involved a dispute regarding the delay in filing supplementary Drawback Claims by M/s. Sujata Enterprises. The Assistant Commissioner rejected the claims as time-barred, leading to an appeal by the respondent before the Commissioner (Appeals) who allowed the appeal. The central issue revolved around the timeliness of filing the claims under Rule 15 of the Drawback Rules.

Issue 2: Legal validity of reasons for delay - late receipt of bank statement and being busy in trade tours

The Exporter cited reasons for the delay, including the late receipt of the bank statement and being engaged in trade tours. The Commissioner of Customs (Appeal) found these reasons justifiable to condone the delay, while the Commissioner of Customs (Air Cargo Exports) did not. The Government analyzed these reasons and their legal validity in the context of the applicable provisions and guidelines.

Issue 3: Interpretation of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

The Government examined Rule 15 of the Customs, Central Excise Duties, and Service Tax Drawback Rules, 1995, which govern supplementary claims for drawback. The rule specified the time limits for filing such claims and the conditions under which delays could be condoned by the authorities.

Issue 4: Compliance with Public Notice No. 44/96 dated 27-8-1996

The case involved a consideration of Public Notice No. 44/96 dated 27-8-1996, which provided guidelines for processing Drawback Claims through the E.D.I. System. The Government assessed the relevance of these guidelines in the context of the Exporter's claims and the reasons cited for the delay.

Issue 5: Consideration of grounds for condoning delay

The Government evaluated the grounds presented by the Exporter for condoning the delay in filing the supplementary Drawback Claims. The reasons of late receipt of the bank statement and being busy in trade tours were scrutinized to determine their sufficiency in justifying the delay under the applicable legal provisions.

Issue 6: Applicability of legal provisions in case of delay in filing claims

The judgment emphasized the importance of adhering to the legal provisions and guidelines governing the filing of supplementary Drawback Claims. It highlighted the need for exporters to comply with the prescribed timelines and requirements, as outlined in the relevant Customs rules and circulars.

Overall, the Government found the impugned order-in-appeal to be not legal and proper, setting it aside and upholding the order-in-original passed by the jurisdictional Assistant Commissioner (Drawback). The revision application succeeded based on the analysis of the issues related to the delay in filing the supplementary Drawback Claims.