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TMI Blog2010 (4) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of its exports, it has been realizing duty drawback under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. The said duty drawback, however, is subject to the petitioner realizing the sale proceeds of the export made by it within a stipulated period of time, which has been prescribed by the Reserve Bank of India to be six months in the normal course. 2. In the present case, the period with which we are concerned is the exports made by the petitioner during the year 1996-1997. The petitioner had made exports under 37 shipping bills and had taken duty drawback in respect of the said exports. The petitioner could not realize the export proceeds within the period of six months of the respective dates of ship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Drawback Rules, 1995, prescribes a period of one year from the date of recovery of drawback, for submission of evidence regarding realization of sale proceeds. Since you had failed to produce such evidence within the prescribed period, you are not entitled for repayment of the amount of drawback." 4. Rule 16A of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, which was applicable at the relevant period, reads as under:- "16A. Recovery of amount of Drawback where export proceeds not realized: (1) Where an amount of drawback has been paid to an exporter or a person authorised by him (hereinafter referred to as the claimant) but the sale proceeds in respect of such export goods have not been realised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rter produces evidence about such realisation within one year from the date of such recovery of the amount of drawback, the amount of drawback so recovered shall be repaid by the Assistant Commissioner of Customs to the claimant." 5. The learned counsel for the petitioner submitted that the petitioner's request for refund of the drawback amount was ostensibly rejected under Rule 16A(4) of the said Rules when, in fact, the said sub-rule did not at all come into play. He submitted that Rule 16A(1) itself provided that the sale proceeds in respect of the exported goods could be realized within the period allowed under the Foreign Exchange Regulation Act, 1973 "including any extension of such period". He submitted that the Reserve Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extended period. The only difficulty that is being caused in this matter is because the extension granted was ex-post facto. However, we feel that this would not make any difference to the petitioner's case. The provision is very clear that unless and until the sale proceeds are realized within the initial time period allowed under the Foreign Exchange Regulation Act, 1973 or any extended period, the drawback taken by the exporter cannot be recovered. This primary condition has not been fulfilled in the present case. Thus, there is no question of the respondents retaining the amount of drawback recovered from the petitioner. We may point out that this is not a case where the exporter is claiming return of the recovered drawback amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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