https://www.taxtmi.com/caselaws?id=775202 The CESTAT Chandigarh allowed the appeal in a case involving alleged fraudulent drawback and DEPB credit claims through mis-declared exports. The department claimed the appellant exported low-quality goods while declaring them as high-grade gaskets, extrapolating findings from separate investigations involving other exporters with similar suppliers. The tribunal held that once drawback is sanctioned following due process, it cannot be recovered without first challenging the original assessment order, citing the SC precedent in ITC Ltd. The proceedings were vitiated due to denial of cross-examination rights and failure to examine key witnesses under Section 138B of the Customs Act, violating natural justice principles. The department's case relied primarily on contradictory statements without corroborative evidence, and the exported goods were properly examined and allowed by customs officers. Consequently, no confiscation, penalty, or drawback recovery was justified. However, regarding unsanctioned drawback of Rs. 7,98,000, the tribunal deemed the matter premature for interference. en-us Fri, 18 Jul 2025 00:00:00 +0530 Sat, 19 Jul 2025 13:58:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775202 The CESTAT Chandigarh allowed the appeal in a case involving alleged fraudulent drawback and DEPB credit claims through mis-declared exports. The department claimed the appellant exported low-quality goods while declaring them as high-grade gaskets, extrapolating findings from separate investigations involving other exporters with similar suppliers. The tribunal held that once drawback is sanctioned following due process, it cannot be recovered without first challenging the original assessment order, citing the SC precedent in ITC Ltd. The proceedings were vitiated due to denial of cross-examination rights and failure to examine key witnesses under Section 138B of the Customs Act, violating natural justice principles. The department's case relied primarily on contradictory statements without corroborative evidence, and the exported goods were properly examined and allowed by customs officers. Consequently, no confiscation, penalty, or drawback recovery was justified. However, regarding unsanctioned drawback of Rs. 7,98,000, the tribunal deemed the matter premature for interference. Case-Laws Customs Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775202