Duty drawback on free shipping bills requires fresh merit-based examination under the applicable circular and drawback rules.

Entitlement to All Industry Rate duty drawback on exports under free shipping bills turned on clause 4 of the Board Circular dated 23.09.2010 and the drawback rules. The Tribunal noted that the adjudicating authority had not recorded a finding on the circular's applicability, and that the limitation basis used in the impugned order was not prescribed by the circular. As the exporter's request had not been examined on merits and natural justice required a proper consideration, the matter could not be finally decided on the existing record. The impugned order was set aside and the claim was remanded for fresh adjudication on merits.

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Issues: Whether the exporter was entitled to claim All Industry Rate duty drawback on goods exported under free shipping bills, and whether the rejection of the claim required reconsideration in light of the applicable Board Circular and drawback rules.

Analysis: The order records that the adjudicating authority did not return a finding on the applicability of clause 4 of the Board Circular dated 23.09.2010, which dealt with allowance of All Industry Rate drawback on exports made under free shipping bills without conversion. The Tribunal noted that the circular did not prescribe the limitation basis relied upon in the impugned order and that the individual request had not been examined on merits. It therefore held that the matter could not be finally decided without a fresh examination of the claim under the circular and the drawback rules, after observing the principles of natural justice.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh consideration on merits.

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