Court orders immediate release of duty drawback for Shipping Bills to aid appeal, alternative remedy available. .

The Court denied the adjustment of duty drawback for pre-deposit but directed the immediate release of duty drawback for five Shipping Bills to assist the petitioner in meeting the pre-deposit requirement for an appeal. The Court also instructed the appellate tribunal not to reject the appeal for lack of pre-deposit for four weeks. The petitioner was allowed to pursue an alternate remedy for the remaining duty drawback claims, aiming to provide a fair resolution for both parties.

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Issues:
Adjustment of pending drawback claims against confirmed demand, consideration of appeal without pre-deposit, refund of duty drawback amount.

Adjustment of Pending Drawback Claims:
The petitioner, engaged in exporting readymade garments, claimed duty drawback for exports under 211 Shipping Bills. Despite the duty drawback being sanctioned, it was not disbursed. Following search operations and investigations, an order was passed dropping proceedings for confiscation of goods but directing the recovery of ineligible Focus Market Scrips and imposing a penalty. The petitioner sought the release of duty drawback, which was due for nine Shipping Bills, to adjust against the pre-deposit required for an appeal. The respondent argued against adjusting duty drawback for pre-deposit, stating no provision under the Customs Act allows it. The Court agreed, noting the difference in nature between duty drawback and pre-deposit, but directed the immediate release of duty drawback for five Shipping Bills to help the petitioner comply with the pre-deposit requirement.

Consideration of Appeal Without Pre-Deposit:
The petitioner filed an appeal against the order but it was not entertained due to the lack of pre-deposit. The respondent contended that duty drawback could not be released for four Shipping Bills without foreign exchange remittance. The Court acknowledged this but directed the release of duty drawback for the remaining five Shipping Bills to help the petitioner meet the pre-deposit obligation. It also instructed the appellate tribunal not to reject the appeal for want of pre-deposit for four weeks.

Refund of Duty Drawback Amount:
The Court disposed of the petition by directing the immediate release of duty drawback for five Shipping Bills to assist the petitioner in fulfilling the pre-deposit requirement. It allowed the petitioner to pursue an alternate remedy for the remaining duty drawback claims. The judgment aimed to address the petitioner's concerns by balancing the release of duty drawback with the obligation to make a pre-deposit for the appeal, ensuring a fair resolution for both parties.

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