2015 (4) TMI 559 - AT - Customs

Interest u/s 75A - delayed payment of duty drawback claim - Maintainability of appeal - Held that - No appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall no jurisdiction to decide any appeal in respect of any order passed by the Commissioner (Appeals), under Section 128 of the Customs Act, if such order relates to payment of draw-back as provided under Chapter X and the Rules made thereunder. It is noted that the appeal against the order of the Commissioner in respect of payment of drawback is appealable before the Appellate Tribunal - claim of interest against the payment of drawback was rejected by the Assistant Commissioner of Customs, which was upheld by the Commissioner (Appeals) and the appeal is filed before the Tribunal. On a plain reading of Section 75A of the said Act, it is clear that the payment of interest is arising from the drawback payable to a claimant under Section 74 or Section 75, which was not paid within the stipulated period. - Under Secretary (Drawback) had not fixed the brand rate of draw back. By Order of the Hon ble Bombay High Court and the Hon ble Supreme Court, the Commissioner fixed the value of brand rate of drawback and the payment of drawback was made to the appellants. Hence, the claim of interest is arising out of payment of drawback under Section 75 of the Act. In our considered view, in the present case, the payment of interest is related to the order of the Commissioner (Appeals), which was arising out of the drawback claim and therefore, the appeal is not maintainable before the Tribunal - Following decision of Mercury Exports & Manufacturing (P) Ltd. (2009 (4) TMI 629 - CESTAT, KOLKATA). - Appeal not maintainable - Decided against assessee.

Summary

Issues:
1. Maintainability of the appeal concerning interest on draw-back claim under Section 75A of the Customs Act, 1962.

Analysis:
The issue in this case revolves around the maintainability of the appeal filed by the appellant concerning the payment of interest on a draw-back claim under Section 75A of the Customs Act, 1962. The Ld. AR for the Revenue contended that the appeal is not maintainable as per the proviso to Section 129A (1) of the Act, which restricts the jurisdiction of the Appellate Tribunal in matters related to draw-back payments under Chapter X of the Act. He argued that the payment of interest is connected to the draw-back claim and cited a previous Tribunal decision in support of his position.

On the other hand, the Ld. Advocate for the appellants argued that the appeal is maintainable as there is no dispute regarding the payment of draw-back, which was paid in accordance with a Supreme Court decision. He emphasized that Section 75A is an independent provision for the payment of interest and not covered by the restrictions under Chapter X of the Act. He cited precedents where similar appeals were admitted by the Tribunal despite preliminary objections.

Upon thorough examination, the Tribunal found that the appellants had exported goods under a scheme and claimed interest on delayed draw-back payments. The Ld. AR reiterated that the interest payment is linked to draw-back under Sections 74 and 75 of the Act. The Tribunal analyzed the relevant provisions and previous decisions to determine the appeal's maintainability.

Ultimately, the Tribunal agreed with the Ld. AR's arguments, stating that the payment of interest is indeed related to the draw-back claim and falls within the jurisdictional restrictions under the Act. They highlighted the distinction between appealable orders related to draw-back payments and those falling under the purview of the Appellate Tribunal. The Tribunal dismissed the appeal as non-maintainable, advising the appellant to seek recourse through the appropriate authority in accordance with the law.

In conclusion, the judgment delves into the intricacies of the Customs Act, specifically addressing the interplay between draw-back payments, interest claims, and the jurisdiction of the Appellate Tribunal. The decision provides clarity on the scope of appeals concerning draw-back-related matters, emphasizing the statutory framework governing such disputes.