2022 (3) TMI 1494 - HC - Customs

Time Limitation for intimation of export made and sale proceeds realised for duty drawback availed by the petitioner - HELD THAT - Respondents submits that, if the petitioner, having realised the sale proceeds, had filed those documents in support of such realisation in time to the respondent Customs, for which, if he claims that the web portal communication dated 25-9-2020, the same would be considered once again and accordingly, the revised order would be passed. Therefore, for that purpose, the matter can be remitted to the respondents. Having considered the said submissions made by both sides and after having gone through the said documents, this Court feels that the matter can be remitted back to the respondents for reconsideration. While reconsidering the same, the respondent Customs can verify the documents referred to above, where, on 25-9-2020 the alert already been put in for several companies like the petitioner since has been removed after receipt of documents to the satisfaction with regard to the realisation of the sale proceeds and orders can be passed. Petition disposed off.

Summary

Issues:
Challenge to Order-in-Original and Demand Notice for duty drawback recovery.

Analysis:
The petitioner sought a writ of certiorari to challenge Order-in-Original No. 82277 of 2021 and the consequential Demand Notice dated 16-2-2022, aiming to quash them. The petitioner had received duty drawback under the Customs Act and the Customs, Central Excise Duties and Services Tax Drawback Rules, 1995. It was contended that the duty drawback was availed against exports, and the sale proceeds needed to be realized and intimated to Customs Authorities within the stipulated time frame as per FEMA, 1999.

The petitioner's counsel argued that the sale proceeds had been realized and duly intimated to Customs Authorities through the web portal, leading to the removal of an alert on 25-9-2020. However, subsequently, an Order-in-Original dated 26-3-2021 was issued, followed by a demand letter on 16-2-2022, demanding recovery of Rs. 26,16,899 as duty drawback. The respondent's counsel suggested that if the petitioner had submitted documents supporting the realization of sale proceeds in a timely manner, the matter could be reconsidered, and a revised order could be issued.

Upon considering the submissions from both sides and reviewing the documents, the Court decided to remit the matter back to the respondents for reconsideration. The Court directed the Customs to verify the documents submitted by the petitioner, particularly those related to the web portal communication of 25-9-2020, and to issue a notice to the petitioner if further input was required. The petitioner was instructed to produce supportive documents regarding the realization of sale proceeds, and based on the input provided, a revised order would be passed. If no recovery of duty drawback was warranted, the issue would be resolved accordingly.

In conclusion, the Court set aside the impugned order and remitted the matter back to the respondents for reconsideration. The Customs were directed to verify the documents submitted by the petitioner, and if necessary, seek additional input before issuing a revised order. The writ petition was disposed of with these directions, and no costs were imposed.