RBI remittances under the special rupee export arrangement could...

RBI remittances under the special rupee export arrangement could not be treated as unrelated to exports without evidence that RBI had rejected or reversed them; Customs was required to have any doubts examined by RBI. Recovery of duty drawback on that premise was therefore unsustainable. Duty drawback depends on the nature of exported goods, while recovery for non-realisation is governed by the Drawback Rules. Export is complete when goods leave India's territorial waters and title passes to the buyer, so alleged diversion or landing at intermediary ports does not defeat drawback entitlement. Goods already exported were outside confiscation provisions, rendering consequential penalties unsustainable. The impugned order was set aside and appeals allowed with consequential relief.