2024 (3) TMI 1249 - HC - Customs

Recovery of duty drawback which was granted earlier with interest - Non-realisation of export proceeds - 100% Export Oriented Unit - exporter of cotton woven powerloom bed covers, pillow covers, cushion covers and bags to France - HELD THAT - The learned counsel for the petitioner has relied on the web portal of the Directorate General of Foreign Trade and submits that the consignment dated 19.03.2014 was realised in the petitioner's account on 12.05.2014 and he is also having the certificate to that effect. However, the petitioner claims that it could have been verified by the respondent in their portal before passing the impugned order. On the other side, the respondents claim that the certificate ought to have been produced by the petitioner at the relevant point of time. This Court, in order to provide one more opportunity to the petitioner, is inclined to remand this matter back to the authorities to consider the matter afresh. Thus, this writ petition is allowed. The order impugned in this writ petition is hereby set aside and the matter is remanded back to the respondents. The petitioner shall appear before the respondents on 15.02.2024, with the Bank Realization Certificate issued by the Directorate General of Foreign Trade and on such appearance, the respondents shall take a decision afresh after affording opportunity to this petitioner. No costs. Consequently, connected Miscellaneous Petitions are closed.

Summary

Issues:
The judgment involves issues related to duty drawback entitlement for a 100% Export Oriented Unit, non-realization of export proceeds, issuance of show cause notice, and the requirement of Bank Realization Certificate for availing duty drawback.

Summary:

1. The petitioner, a 100% Export Oriented Unit, exported various products to France and was entitled to duty drawback upon realization of sale proceeds in foreign exchange within six months. The petitioner received a show cause notice for non-realization of export proceeds for a consignment made in 2014, leading to an order to repay the duty drawback amount with interest. The petitioner claimed non-receipt of show cause notice and related hearing intimations due to business losses and non-functioning office. The petitioner presented evidence of realization of sale proceeds through a Bank Realization Certificate, available on the Directorate General of Foreign Trade website, but the respondent issued the impugned order without verifying this information.

2. The learned standing counsel for the respondents argued that the petitioner failed to produce the Bank Realization Certificate during the enquiry despite having opportunities for a personal hearing, justifying the issuance of the impugned order.

3. The Court examined the submissions and evidence on record, noting that the petitioner, as an Export Oriented Unit, availed duty drawback benefits but failed to provide the Bank Realization Certificate for the 2014 consignment, leading to the order for repayment. The petitioner relied on the Directorate General of Foreign Trade web portal to demonstrate the realization of sale proceeds, suggesting that the respondent could have verified this information before issuing the order. The Court, aiming to grant the petitioner another chance, decided to remand the matter back to the authorities for a fresh consideration.

4. Consequently, the writ petition was allowed, setting aside the impugned order and remanding the case to the respondents. The petitioner was instructed to appear before the authorities with the required Bank Realization Certificate, and a fresh decision was to be made after providing the petitioner with an opportunity. No costs were imposed, and connected Miscellaneous Petitions were closed.