2022 (3) TMI 706 - HC - Customs

Refund the drawback and interest paid by the petitioner - petitioner has not filed the proof for realisation of sale proceeds in foreign exchange - HELD THAT - Merely because it takes some time by the revisional authority to decide the revision to be filed in this regard under Section 35 EE of the Act, it cannot be stated that it would not be an efficacious alternative remedy. If at all the issue relates only to interest, whether that should be paid to the petitioner or not, since it is a simple issue, it can be decided easily at the earliest by the authority concerned before whom if such revision is filed by the petitioner. Therefore, within a time frame such revision to be filed by the petitioner can be disposed of. The petitioner can approach the revisional authority under Section 35EE of the Act by filing a revision within a period of two weeks from the date of receipt of a copy of this order - Once such revision is filed, the same shall be entertained and decided by the revisional authority within a period of 60 days thereafter, as the issue to be decided in the said revision is only with regard to the claim of the petitioner for getting interest - Petition disposed off.

Summary

Issues:
- Duty drawback availed by the petitioner
- Proof of realization of sale proceeds in foreign exchange
- Recovery of duty drawback by the original authority
- Refund of duty drawback amount
- Entitlement of interest on the refunded amount
- Appeal before the first appellate authority
- Availability of further appeal by way of revision under Section 35EE of the Central Excise Act, 1944
- Efficacy of the alternative remedy
- Decision on whether interest should be paid to the petitioner

Analysis:
The petitioner, an exporter, had availed duty drawback under the relevant Rules subject to conditions, including filing proof of realizing sale proceeds in foreign exchange within a specified time frame. The Revenue alleged non-submission of this proof, leading to an order by the original authority to recover the duty drawback. An appeal was filed by the petitioner, who later submitted the required proof, resulting in the original authority directing the refund of the recovered amount. However, no interest was paid on the refunded sum, prompting the petitioner to appeal before the first appellate authority, which upheld the decision denying interest entitlement.

The petitioner argued before the High Court that if entitled to duty drawback refund, interest should also be granted. The Revenue contended that the petitioner could file a further appeal by way of revision under Section 35EE of the Act, emphasizing it as an effective alternative remedy. The petitioner countered, citing delays in disposing of appeals by the authority, questioning the efficacy of such an alternative.

Upon reviewing submissions, the Court acknowledged the potential delay in revisional authority decisions but deemed it an efficacious alternative remedy. The Court directed the petitioner to file a revision within two weeks under Section 35EE, ensuring the revisional authority decides on the interest claim within 60 days. The Court emphasized the need for notice, personal hearing, and a prompt decision by the revisional authority involving both parties.

In conclusion, the High Court disposed of the writ petition, instructing the petitioner to pursue the revisional remedy for the interest claim, ensuring a timely resolution within the specified period.