Reasoned speaking orders are required for drawback claims; inconsistent customs treatment without justification cannot stand.

Rule 12 of the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995 required the Commissioner to exercise discretion on drawback claims by a reasoned speaking order. A customs authority could not reject conversion of shipping bills or drawback relief without adequate reasons, particularly where an identical claim had already been accepted by another customs formation. Because the impugned orders did not explain the departure from the earlier treatment, they were unsustainable. The matter was set aside and remitted for fresh consideration after hearing the petitioner.

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Issues: Whether the orders rejecting the claim for drawback and conversion of shipping bills were sustainable in the absence of a reasoned speaking order and in the face of inconsistent treatment by different customs authorities.

Analysis: Rule 12 of the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995 vested discretion in the Commissioner to grant exemption from the declaration requirements and to consider drawback claims on merits. That discretion, however, had to be exercised by a reasoned order. The record showed that similar claims had been accepted by another customs formation, while the impugned rejection contained no adequate reasoning to explain the contrary approach. In matters administered under the same central enactment, a consistent and unified approach is required, and any departure from an earlier acceptance of an identical claim must be justified by detailed reasons.

Conclusion: The impugned orders were unsustainable and were set aside; the matter was remitted for fresh consideration after hearing the petitioner.

Ratio Decidendi: Discretion under the drawback rules must be exercised by a reasoned speaking order, and a customs authority cannot depart from an accepted identical treatment without adequate justification, as uniformity in administrative discretion is required.

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