2023 (2) TMI 146 - HC - Customs

Duty drawback as per the provisions of Section 74 of the Customs Act, 1962 - rejection on the ground that the petitioner has not satisfactorily established the reasons for delay in filing the duty drawback claim - non-speaking order - violation or principles of natural justice - HELD THAT - Learned Standing Counsel for the respondents cannot rely upon the documents filed along with these writ petitions, that too, when the first respondent has not considered the same on merits in the impugned orders, which is a cryptic and non-speaking order. Any improvement of the impugned order cannot be made by the learned Standing Counsel for the respondents. Therefore, the contentions of the learned Standing Counsel for the respondents before this Court is rejected. It is also not in dispute that the petitioner has satisfied all the statutory requirements for claiming duty drawback as per the provisions under Section 74 of the Customs Act, 1962. When the petitioner has given detailed reasons as to why they were unable to file the duty drawback claim within the prescribed time, the first respondent ought to have considered the said reasons objectively, but as seen from the impugned orders, no reasons have been given for rejecting the petitioner s reasons for non filing of the duty drawback claim on time - Being a cryptic and non-speaking order, the impugned orders will have to be necessarily quashed and the matter has to be remanded back to the first respondent for fresh consideration on merits and in accordance with law. The matter is remanded back to the first respondent for fresh consideration on merits and in accordance with law - Petition disposed off.

Summary

Issues:
Challenge to impugned orders rejecting duty drawback claim under Rule 7A of the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995.

Analysis:
The writ petitions challenged impugned orders rejecting the petitioner's duty drawback claim under Rule 7A of the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. The petitioner imported accessories for mobile phone manufacturing from China, re-exported leftover accessories, and sought duty drawback under Section 74 of the Customs Act, 1962. The petitioner re-exported within the stipulated period but failed to file the duty drawback claim within the prescribed time under Rule 5(1) of the aforementioned Rule. The petitioner invoked Rule 7A due to unavoidable circumstances causing the delay, which was rejected by the first respondent. The petitioner contended that all statutory requirements were met, and reasons for delay were beyond their control, citing reasons like office relocation and staff resignation. The impugned orders were challenged for not considering these reasons adequately.

The first respondent rejected the relaxation petition under Rule 7A, stating the petitioner failed to satisfactorily establish reasons for the delay in filing the duty drawback claim. The petitioner argued that unavoidable circumstances caused the delay, supported by evidence like an affidavit and medical records. Various legal precedents were cited to support entitlement to relaxation under Rule 7A. The impugned orders were criticized for not considering the petitioner's contentions regarding the delay adequately, resulting in a non-speaking order. The court noted that the petitioner met all statutory requirements for duty drawback and provided detailed reasons for the delay, which the first respondent failed to objectively consider.

The court held that the impugned orders were cryptic and non-speaking, necessitating their quashing and remand for fresh consideration by the first respondent. The matter was directed to be reconsidered on merits and in accordance with the law, with a mandate for the first respondent to provide a reasoned decision within eight weeks. The court emphasized the importance of considering the petitioner's submissions objectively and granting a personal hearing before passing final orders. Ultimately, the writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed.