Drawback recovery not justified where export proceeds were realised on time and only a procedural certificate filing lapse occurred.

Recovery of drawback was unwarranted where export proceeds were realised within the prescribed period, because Rule 16/16A of the Customs, Central Excise and Service Tax Drawback Rules, 1995 permits recovery only when foreign exchange is not realised in time. The delayed filing of the Chartered Accountant's certificate required by a departmental circular was treated as a procedural lapse, not a breach attracting recovery under the drawback rules. With the outstanding amount on one shipping bill already voluntarily deposited with interest, there was no basis to sustain recovery of the remaining drawback.

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Issues: Whether recovery of drawback was warranted when the export proceeds had been realised within the stipulated period, but the Chartered Accountant's certificate was not filed on a six-monthly basis as contemplated by the departmental circular.

Analysis: Rule 16/16A of the Customs, Central Excise and Service Tax Drawback Rules, 1995 permits recovery only where the foreign exchange proceeds for the exported goods are not realised within the prescribed period. The record showed that the export proceeds had in fact been realised in time, and the defect noticed was only the delayed furnishing of the Chartered Accountant's certificate as required by the circular. Such non-submission of the certificate on the prescribed schedule was a procedural lapse and not a violation of the drawback rules. As the only outstanding amount relating to one shipping bill had already been voluntarily deposited with interest, there was no basis to sustain recovery of the remaining drawback.

Conclusion: Recovery of drawback was not warranted and the revision application succeeded in favour of the assessee.

Ratio Decidendi: Where export proceeds are realised within the statutory period, drawback cannot be recovered merely because the supporting Chartered Accountant's certificate was not filed in the manner prescribed by a circular, since such lapse is procedural and does not attract the recovery provisions.

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