2007 (3) TMI 45 - AT - Customs

Tribunal Remands Drawback Rejection Cases for Procedural Review

The Tribunal addressed time-barred supplementary claims for drawback rejection by the Commissioner and the interpretation of relevant rules. The judgments ... Drawback – Appellant demand for drawback on the three consignment and authority allow only custom portion of drawback in one and disallowed in all – Subsequently the party filed supplementary claims – Matter remanded to the authority having jurisdiction over the subject mater of the supplementary drawback Issues Involved:1. Time-barred supplementary claims for drawback rejection by Commissioner.2. Interpretation of Customs, Central Excise, Duties and Service Tax Drawback Rules, 1995 regarding filing of supplementary claims.Issue 1: Time-barred supplementary claims for drawback rejection by Commissioner:In the first appeal, the appellant exported consignments of 'leather shoe uppers' under drawback claim, failing to submit required documents within the stipulated time. The Customs Authorities sanctioned part of the claim in one Shipping Bill but rejected the rest due to missing documents. The party later filed supplementary claims, rejected by the Commissioner as time-barred. The appellant argued that Rule 15 allows for supplementary claims within three months of the relevant date, depending on communication of the decision on the original claim. Since no communication occurred, rejection of supplementary claims was challenged. The Tribunal found merit in the appellant's case, noting the lack of communication on claim decisions. The matter was remanded for reconsideration of the supplementary claims by Customs authorities.Issue 2: Interpretation of Customs, Central Excise, Duties and Service Tax Drawback Rules, 1995 regarding filing of supplementary claims:In the second appeal involving exports of 'leather garments,' a similar situation arose where required documents were not submitted on time, leading to rejection of supplementary claims by the Commissioner as time-barred. The Tribunal observed that the Commissioner failed to consider the provisos to Rule 15(1) regarding the period for filing supplementary claims. The Tribunal set aside the Commissioner's decision, emphasizing the need for proper assessment of the claims on their merits. The appeal was allowed by remand, directing Customs authorities to review the supplementary claims after providing the party with a fair opportunity to be heard.In conclusion, the Tribunal addressed the issues of time-barred supplementary claims for drawback rejection by the Commissioner and the interpretation of relevant rules governing the filing of such claims. The judgments emphasized the importance of proper communication and adherence to procedural requirements in processing drawback claims, ultimately remanding the matters for a reconsideration of the claims on their merits.