Drawback rate fixation cannot be altered by field officers once notified, absent express rule-based authority.

Under the Customs Act and Drawback Rules, fixation of drawback rates rests with the Central Government, and the proviso to Rule 3(1) permits reduction only as part of that notified fixation. Field customs officers cannot further vary or deduct from an already notified drawback rate unless the rule expressly authorises that power, because such a deduction would amount to impermissible sub-delegation. The officer's powers under Sections 5 and 6 do not enlarge this competence. The duty-free input element therefore could not be separately reduced from the drawback claimed, and the revisional applications succeeded.

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Issues: Whether the Assistant Commissioner of Customs was competent to reduce the admissible drawback by deducting duty elements relatable to duty-free imported inputs under the drawback rules.

Analysis: The power to determine drawback rates under Section 75 of the Customs Act, 1962 and Rule 3(1) of the Customs and Central Excise Duties Drawback Rules, 1971 rests with the Central Government. The proviso to Rule 3(1) permits reduction of drawback only as part of the Government's fixation of the rate or amount of drawback and does not confer any authority on field officers to vary the rate after it has been notified. The statutory scheme did not authorize a further deduction by the assessing officer, and such a construction would amount to an impermissible sub-delegation of the Government's rule-making function. The related provisions concerning officer powers under Sections 5 and 6 of the Customs Act, 1962 did not enlarge the officer's competence to reduce the Government-fixed drawback.

Conclusion: The Assistant Commissioner had no authority to make the deduction, and the duty-free input element could not be separately reduced from the drawback claimed.

Final Conclusion: The revisional applications succeeded and the orders of the lower authorities were set aside.

Ratio Decidendi: Where the statute entrusts fixation of drawback rates to the Central Government, subordinate customs officers cannot vary the notified rate by making a further deduction unless the rule expressly confers that power.

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