2023 (4) TMI 789 - HC - Customs

Recovery of Export benefit of RoDTEP Scheme - exports of white refined sugar - Period of dispute from 1.6.2022 to 30.11.2022 - Restricted goods or not for the said period under FTP - Unable to claim in the shipping bill - seeking protection against the coercive recovery and further seeking the entitlement to the export benefit under the RoDTEP Scheme - HELD THAT - The court is of the view that the following directions would serve the ends of justice. Accordingly it is provided that, (i) The petitioner shall be entitled to claim the RoDTEP Scheme benefit in respect of the exports of white refined sugar at the rate permissible. Even if such benefit is not claimed or mentioned in the shipping bills, the petitioner is permitted to make necessary application seeking such benefit in respect of the consignments concerned. (ii) The passage of time in making such applications which would occur as amount would not be mentioned in the shipping bills, would not render the claim of the petitioner time barred. (iii) The non-mentioning of the claim of the benefit in the shipping bill by the petitioner shall also not be treated as waiver on part of the petitioner by the authorities. (iv) The authority shall process the claim of the petitioner for RoDTEP Scheme benefit irrespective of the fact that the same was not mentioned or lodged along with the shipping bill concerned. (v) If any adjudicatory proceedings are require to be undertaken by the authorities in respect of the claim of the petitioner for the benefit, the respondent Nos.3- The Commissioner of Customs, Kandla and respondent No.4- The Assistant Commissioner of Customs, (DBK), Kandla, shall while deciding the claim, extend opportunity of hearing to the petitioner and shall act in accordance with Section 28 of the Customs Act. Petition disposed off.

Summary

Issues Involved:
The issues involved in the judgment are the entitlement of the petitioner to export benefits under the RoDTEP Scheme for refined white sugar exports, the denial of such benefits by custom authorities, and the legality of coercive recovery actions taken against the petitioner.

Entitlement to RoDTEP Scheme Benefits:
The petitioner, a manufacturer and exporter of refined white sugar, sought entitlement to export benefits under the RoDTEP Scheme for exports made from June 2022 to November 2022. The petitioner claimed RoDTEP benefits by mentioning them in shipping bills when exporting from various ports. However, issues arose when custom authorities restricted exports of sugar and denied RoDTEP benefits for such restricted exports. The petitioner faced challenges in claiming benefits in shipping bills due to changed stances of custom authorities at different ports.

Coercive Recovery Actions:
The petitioner faced threats of recovery proceedings under Section 142 of the Customs Act, 1962, for not claiming RoDTEP benefits in shipping bills from June 2022 onwards. The petitioner argued that coercive recovery actions without prior notice and opportunity to be heard were impermissible. The petitioner contended that denial of export benefits without allowing claims in shipping bills violated their rights and procedural safeguards under the Customs Act.

Court's Directions and Decision:
The court directed that the petitioner is entitled to claim RoDTEP Scheme benefits for white refined sugar exports, even if not mentioned in shipping bills. The court clarified that the non-mentioning of benefits in shipping bills would not render claims time-barred or waived. Custom authorities were instructed to process the petitioner's benefit claims irrespective of their inclusion in shipping bills. Additionally, authorities were mandated to provide an opportunity of hearing to the petitioner in adjudicatory proceedings related to benefit claims, in line with Section 28 of the Customs Act. The court did not delve into other aspects of the case, such as export policy limits.

Conclusion:
The judgment addressed the petitioner's entitlement to RoDTEP Scheme benefits for refined white sugar exports and the legality of coercive recovery actions by custom authorities. The court upheld the petitioner's right to claim benefits, even if not mentioned in shipping bills, and directed authorities to process such claims and provide a fair hearing. The judgment clarified procedural safeguards and rights of the petitioner in claiming export benefits under the RoDTEP Scheme.