Drawback relaxation limits prevent Rule 15 from creating entitlement where cotton embroidered fabrics were not covered by the schedule.

Rule 15 of the Customs and Central Excise Duty Drawback Rules, 1971 could not be invoked to grant drawback on cotton embroidered fabrics for the relevant period because the difficulty was not a procedural lapse but the absence of any substantive drawback entry or notification covering those goods. The relaxation power under Rule 15 extends only to procedural compliance, not to creating entitlement where drawback was not otherwise legally admissible. As no schedule entry applied during the period in question, the claim had no substantive legal basis and was untenable.

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Issues: Whether Rule 15 of the Customs and Central Excise Duty Drawback Rules, 1971 could be invoked to grant drawback on cotton embroidered fabrics for the relevant period when the goods were not covered by the drawback schedule.

Analysis: The power to relax under Rule 15 extends only to procedural compliance and can be exercised where the exporter has failed to comply with the prescribed procedural requirements. In the present case, the difficulty was not a procedural lapse by the exporter but the absence of a substantive notification or schedule entry making drawback admissible on the goods during the relevant period. Since no drawback was legally admissible on the embroidered fabrics for that period, there was no substantive basis on which Rule 15 could operate.

Conclusion: Rule 15 could not be used to sanction drawback for the relevant period, and the claim was untenable.

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