Drawback recovery requires verified proof of export realisation before penalty can be sustained.

Recovery of drawback under Section 75 of the Customs Act, 1962 and Rule 16A of the Drawback Rules depends on whether export proceeds were actually not realised within the permitted period and whether the exporter produced acceptable proof of realisation. The text notes that the claimed Bank Realisation Certificates were supported only by photocopies, while the alleged forwarding letter was not on record, so the authenticity, timing, validity, and DGFT-format compliance of the certificates required verification before recovery could be sustained. Because the proposed penalty under Section 117 was linked to that verification, the impugned order was set aside and the matter remanded for fresh consideration.

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Issues: Whether the drawback already sanctioned was recoverable for alleged non-realisation of export proceeds and non-production of Bank Realization Certificates, and whether the matter required remand for verification of the documents.

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 depends on whether export proceeds were in fact not realised within the permitted period and whether the exporter produces acceptable evidence of realisation. The claim that Bank Realization Certificates had been submitted was supported only by photocopies, while the alleged forwarding letter was not on record. In these circumstances, authenticity, validity, timing of submission, and conformity of the certificates with the prescribed DGFT format required verification before a final determination could be made. The penalty under Section 117 of the Customs Act, 1962 was therefore also dependent on the outcome of such verification.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration after verification of the Bank Realization Certificates and related evidence.

Ratio Decidendi: Where recovery of drawback turns on disputed proof of export realisation, the authority must verify the authenticity and sufficiency of the Bank Realization Certificates before sustaining recovery and consequential penalty.

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