1992 (9) TMI 107 - HC - Customs

Summary

Issues:
Claim for refund of drawback under Section 74 of the Customs Act, 1962; Identification of re-exported goods for claiming drawback; Rejection of claim by Assistant Collector of Customs; Appeal before Appellate Authority; Value of consignments at the time of exportation; Revision application before Central Government; Interpretation of Section 74 of the Customs Act, 1962; Challenge to valuation of re-exported goods; Upholding judgment of the trial Judge.

Analysis:
The case involved a writ application by Hindustan Malleable & Forgings Ltd. claiming refund of drawback under Section 74 of the Customs Act, 1962 amounting to Rs. 1,92,828.29 for re-exported defective goods. The Assistant Collector of Customs rejected the claim citing lack of proper identification of re-exported goods. However, the Appellate Authority, followed by the Central Government, allowed the claim stating that the goods were defective and entitled to drawback on the original value.

The appellants contended that the identification of re-exported goods with imported ones is crucial under Section 74 and challenged the valuation of re-exported defective goods. They argued that the value should be determined based on the specific goods re-exported, not just the import invoice value. The appellants valued the re-exported goods at Rs. 69,983.

The High Court upheld the judgment of the trial Judge, stating that the appellants cannot challenge the valuation of re-exported goods at this stage. The Court emphasized that the orders of the Appellate Authority and the Central Government were not challenged by the appellants, and therefore, they cannot reassess the value of the goods. The Court found that the appellants had no reasonable cause to refuse payment of the drawback claim, as confirmed by the Collector of Customs (Appeals) and the Central Government.

In conclusion, the High Court dismissed the appeal, upholding the trial Judge's decision and ordering no costs. All parties were directed to act on the judgment's operative part, and the decision was final.