Drawback claims must follow the shipping bill date test, not the export-date definition under customs law.

Drawback claims must be assessed under Section 16 of the Customs Act, 1962 and Rule 5(2) of the Drawback Rules, with the relevant date being the presentation of the shipping bill, subject to the deemed presentation rule where the shipping bill precedes entry outward of the vessel. Treating the export date as decisive by reference to Section 2(18) of the Customs Act, 1962 is incorrect because it does not apply the controlling drawback test. Where the factual record is incomplete, the exporter's claim requires reconsideration on the proper statutory basis.

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Issues: Whether the claim for drawback had to be decided with reference to Section 16 of the Customs Act, 1962 and Rule 5(2) of the Drawback Rules, and whether reliance on Section 2(18) of the Customs Act, 1962 was misplaced.

Analysis: The governing test for determining the rate and amount of drawback was the statutory rule tied to Section 16 of the Customs Act, 1962, namely the date on which the shipping bill is presented, subject to the deemed presentation rule where the shipping bill precedes entry outward of the vessel. The lower authorities had proceeded on the footing that the goods were exported on a particular date and had treated that date as decisive by reference to Section 2(18) of the Customs Act, 1962. That approach ignored the controlling provision governing drawback and therefore did not properly address the relevant statutory test. As the full facts were not before the authority, the exporter's claim required liberal and factual reconsideration.

Conclusion: The reliance on Section 2(18) of the Customs Act, 1962 was held to be misplaced, and the matter was remanded for fresh decision after examining the facts in the light of Section 16 of the Customs Act, 1962 and Rule 5(2) of the Drawback Rules.

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