Submission of Realisation proofs agn DBK S/bills with customs is mandatory ??

[VIRAF DEBOO]

Dear All,

We have received Demand Cum Show cause notice without DIN No. from Dy Commissioner of Customs Mumbai as per Public Notice No. 76/2024 dtd. 21.09.2024 & No. 24/2016-17 dated 15.07.2016 for non-submission of realisation proof against s/bills for FY 2020 to FY 2022 under which we are having Duty Drawback benefit.  We have uploaded all BRCs on DGFT portal on time as well as closed those S/bills with EDPMS.  

Please advice whether it is mandatory binding to submit realisation proofs with Custom Deptt. for which SCN has been issued ??

[YAGAY andSUN]

The Show Cause Notice issued without a valid Document Identification Number (DIN) is prima facie contrary to the binding instructions issued by the Central Board of Indirect Taxes and Customs, which mandate quoting of DIN on all communications including notices. In the absence of DIN, and unless covered by specifically recorded exceptional circumstances subsequently regularised, such notice is procedurally invalid and liable to be treated as non est in law. However, there are certain recent judgment which enumerate that not depicting the DIN on the SCN, can't make it invalid ab-initio.

Without prejudice, under Rule 16A of the Customs and Central Excise Duties Drawback Rules, 2017 read with the Customs Act, 1962, recovery of duty drawback arises only upon failure to realise export proceeds within the prescribed FEMA period. Where export realisation stands duly completed, e-BRCs have been uploaded on the DGFT portal, and shipping bills are closed in EDPMS, there exists no independent statutory mandate requiring separate submission of realisation proof to Customs in the absence of any specific discrepancy or short realisation.

Further it is pertinent to mention that in the month of Sept" 2024, JNCH has issued a public notice to all exporters to submit the BRCs to their online portal " Dristi" - Export Proceeds Monitoring System. https://www.jawaharcustoms.gov.in/pdf/PN-2024/PN-84-2024.pdf . You need to comply with this requirement.

[KASTURI SETHI]

Whether ALL the export proceeds were received within stipulated period ? There must not be any delay. Check all shipping bills viz-a-viz the date of receipt of export proceeds.

[KASTURI SETHI]

Dear Querist,

You have mentioned that you have uploaded all BRCs on time. Correlate the following information in respect of all shipping bills

(i) The date of shipping bill

(ii) The date of actual export

(iii) The date of receipt of export proceeds

(iv) The date of issuance of BRCs

(v) The date of uploading the BRCs.

[VIRAF DEBOO]

Dear All,

Thank you all for your valuable reply on the subject matter.

AI Summary

Export realisation proof: no separate Customs filing required if e BRCs uploaded and shipping bills closed, subject to verification. Export realisation under Rule 16A and the Customs Act permits recovery only on failure to realise proceeds within the FEMA period; where e BRCs are uploaded and shipping bills closed in EDPMS, there is no separate statutory duty to furnish realisation proofs to Customs absent a specific discrepancy or short realisation. Procedurally, an SCN without a DIN is prima facie defective though not invariably invalid, and exporters must also comply with port public notices requiring BRC submission to designated online monitoring portals and validate timelines for export, BRC issuance and upload.