Court remits matter for reconsideration, directs Customs to verify documents. Petitioner to produce supportive documents for revised order.

The Court remitted the matter back to the respondents for reconsideration, directing Customs to verify documents submitted by the petitioner regarding the realization of sale proceeds and issue a notice if further input was needed. The petitioner was instructed to produce supportive documents, and based on the input, a revised order would be passed. If no duty drawback recovery was warranted, the issue would be resolved accordingly. The impugned order was set aside, and the writ petition was disposed of with these directions, without imposing costs.

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Issues:
Challenge to Order-in-Original and Demand Notice for duty drawback recovery.

Analysis:
The petitioner sought a writ of certiorari to challenge Order-in-Original No. 82277 of 2021 and the consequential Demand Notice dated 16-2-2022, aiming to quash them. The petitioner had received duty drawback under the Customs Act and the Customs, Central Excise Duties and Services Tax Drawback Rules, 1995. It was contended that the duty drawback was availed against exports, and the sale proceeds needed to be realized and intimated to Customs Authorities within the stipulated time frame as per FEMA, 1999.

The petitioner's counsel argued that the sale proceeds had been realized and duly intimated to Customs Authorities through the web portal, leading to the removal of an alert on 25-9-2020. However, subsequently, an Order-in-Original dated 26-3-2021 was issued, followed by a demand letter on 16-2-2022, demanding recovery of Rs. 26,16,899 as duty drawback. The respondent's counsel suggested that if the petitioner had submitted documents supporting the realization of sale proceeds in a timely manner, the matter could be reconsidered, and a revised order could be issued.

Upon considering the submissions from both sides and reviewing the documents, the Court decided to remit the matter back to the respondents for reconsideration. The Court directed the Customs to verify the documents submitted by the petitioner, particularly those related to the web portal communication of 25-9-2020, and to issue a notice to the petitioner if further input was required. The petitioner was instructed to produce supportive documents regarding the realization of sale proceeds, and based on the input provided, a revised order would be passed. If no recovery of duty drawback was warranted, the issue would be resolved accordingly.

In conclusion, the Court set aside the impugned order and remitted the matter back to the respondents for reconsideration. The Customs were directed to verify the documents submitted by the petitioner, and if necessary, seek additional input before issuing a revised order. The writ petition was disposed of with these directions, and no costs were imposed.

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