Export drawback recovery upheld where realization of proceeds was not proved within the statutory period.

Drawback already granted remained recoverable because realization of export proceeds within the prescribed statutory period was treated as a mandatory requirement under the Customs, FEMA and Export Import Policy framework. A later chartered accountant's certificate did not suffice, as it was issued long after export and did not identify the dates of remittance receipts. The CBEC circular was held inapplicable to exports made before 1-1-2004 and did not dispense with the need to produce Bank Realization Certificates on these facts. Recovery of drawback, interest and penalty was therefore sustained.

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Issues: Whether drawback already granted was recoverable for failure to establish realization of export proceeds within the statutory time limit, and whether a later chartered accountant's certificate and the CBEC circular displaced the requirement of proof of realization for exports made before 1-1-2004.

Analysis: Recovery of drawback under Section 75 of the Customs Act, 1962 and Rule 16A of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 was upheld because realization of export proceeds within the time prescribed under Section 8 of the Foreign Exchange Management Act, 1999 read with Regulation 9 of the Foreign Exchange Management (Export of Goods & Services) Regulations, 2000 and Para 2.41 of the Export Import Policy 2005-2009 is a statutory requirement. The chartered accountant's certificate was found insufficient, as it was issued long after export, did not state dates of receipt of remittances, and the CBEC Circular No. 5/2009-Cus. was held inapplicable to exports prior to 1-1-2004. The circular was also held not to dispense with production of Bank Realization Certificates as proof of realization in the facts of the case.

Conclusion: The recovery of drawback, interest, and penalty was sustained and the revision application failed.

Ratio Decidendi: Where export proceeds are not proved to have been realized within the prescribed statutory period, drawback is recoverable, and a later certificate cannot override the statutory requirement or cure non-compliance for inapplicable export periods.

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