2015 (5) TMI 1023 - CGOVT - Customs

Government upholds Commissioner's order on drawback benefit recovery due to late realization certificate submission.

The Government upheld the Commissioner (Appeals) order confirming the recovery of drawback benefit and interest due to the failure to submit the ... Recovery of drawback amount where export proceeds not realized - Exporter were granted drawback with regard to exports made by them vide Nine (9) shipping bills, subsequently, demand of drawback already sanctioned was confirmed on the ground that in respect of 2 shipping bills, the date of realization was not mentioned and in respect of remaining 7 shipping bills, the realization date was beyond the stipulated time period and no Reserve Bank of India’s permission for such extension, if any, was submitted - Held that:- as per the the provisions of recovery of amount of drawback where export proceeds not realized stipulated under Rule 16A of the Customs, Central Excise and Service Tax Duty Drawback Rules, 1995 and the relevant sub-rules (2) and (4) of the Rule 16A is recoverable, if the export proceeds are not submitted within stipulated time limit or extension given by Reserve Bank of India, if any. Therefore, as the realization were made beyond one year stipulated period and there is a gap of more than two years between the date of export and date of realization of export proceeds and also the appellant failed to submit any extension of Reserve Bank of India regarding realization of export proceeds, the applicants are liable to pay drawback availed by them for the reasons of failure to realize foreign exchange within stipulated time limit or Reserve Bank of India’s extension, if any. - Application rejected Issues:Recovery of drawback benefit due to failure to submit realization certificate within stipulated time period.Analysis:The case involves an appeal by M/s. Had Contiments against the Order-in-Appeal confirming the demand of drawback benefit of Rs. 1,56,328 along with interest. The applicant exported goods but failed to submit the realization certificate within the specified time frame. The Commissioner (Appeals) rejected the appeal due to the lack of evidence regarding the realization of remittance within the stipulated period.The applicant contended that they had submitted Bank certificates indicating the realization dates of export proceeds for all shipping bills. They argued that the lower adjudicating authority and the Commissioner (Appeals) ignored this evidence. The applicant emphasized that they promptly responded to the demand-cum-notice, providing necessary documents, but the authorities failed to consider these submissions.The Government reviewed the case records, submissions, and relevant orders. It was noted that the realization of export proceeds was beyond the stipulated time frame, as evidenced by the Bank certificates and the delay in submission of required documents. The Government highlighted the provisions of Rule 16A of the Customs, Central Excise and Service Tax Duty Drawback Rules, emphasizing the recovery of drawback if export proceeds are not realized within the specified period.The Government found that the applicant failed to provide evidence of extension from the Reserve Bank of India regarding the realization of export proceeds. Consequently, the authorities were justified in confirming the recovery of the drawback amount along with interest. The Government upheld the order of the Commissioner (Appeals) and rejected the revision application for lacking merit.In conclusion, the judgment underscores the importance of complying with the prescribed time frames for realizing export proceeds to avoid the recovery of availed drawback benefits. The case serves as a reminder of the legal obligations and consequences associated with export procedures and documentation requirements.