2019 (8) TMI 1345 - HC - Customs

Fraudulent availment of incentive drawbacks - Release of drawback incentives - de-freezing of Bank Account - HELD THAT - It is not in dispute that the export proceeds qua the aforesaid consignment stood released on 30.11.2018 under intimation through on line communication to Directorate General of False Trade (DGFT) - the Department of Customs can no longer maintain the previous objections with regard to the non release of incentive amount due. The petition petition is disposed of as infructuous.

Summary

Issues:
1. Detention of goods and freezing of bank account by DRI based on suspicion of misdeclaration.
2. Delay in releasing drawback incentives by Department of Customs.
3. Petitioner's plea for direction to de-freeze bank account and release of incentives.

Analysis:
1. The petitioner, engaged in textile garment export, faced detention of goods and freezing of bank account by the Directorate of Revenue Intelligence (DRI) due to suspected misdeclaration of exported goods' value. DRI detained the container and froze the bank account pending investigation, but later dropped the investigations and issued a no objection certificate for goods release by the Department of Customs.

2. The petitioner filed a writ petition against the Department of Customs for not releasing drawback incentives based on the exported goods. The export proceeds were released in November 2018, and the petitioner provided Bank Realization Certificates (BRCs) for the shipping bills. The Customs Department acknowledged the need to release the due amounts of drawback incentives and assured the court of doing so within four weeks.

3. Considering the Customs Department's commitment to releasing the incentives, the petitioner agreed that no further adjudication was required in the writ petition. The court disposed of the petition as infructuous, directing the Department of Customs to release the due amounts within four weeks. Failure to comply would result in interest accrual at 9% on the total amount due, with officials facing contempt proceedings and potential recovery of interest from the sanctioning authority.