2006 (8) TMI 504

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y them, under Section 113(h) & (ii) of the Act and has imposed a fine of Rs. 1.25 crores as the goods are not available for confiscation. A penalty of over Rs. one crore has also been imposed on the party under Section 114(iii) of the Act. There is a separate penalty of Rs. 1.00 lath on M/s. K.B.S. Manian & Bros. P. Ltd. [CHA for the above exporters] under the same provision of law. The present applications are for waiver of predeposit and stay of recovery in respect of the amounts demanded by the Commissioner. 2. After examining the records and hearing both sides, we find that M/s. K.V.S. Exports Pvt. Ltd. had exported stitched garments under claim of drawback during the period 1998 to 2001. After completing the formalities, they g....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Reserve Bank of India under Rule 16A of the Drawback Rules. In any case, according to learned counsel, it was irregular on the part of the Department to have issued the show-cause notice for recovery of drawback amount after obtaining documentary evidence of realization of sale proceeds. The procedure under Rule 16A was not followed for such recovery. In this connection, learned counsel relies on the Tribunal's decision in Indo Export House v. Commissioner of Central Excise - 2004 (168) E.L.T. 142 (Tri.-Del.) wherein, in a case of export under drawback claim, it was found that any demand for recovery of drawback amount could be raised only where the export proceeds were not realized. In that case, the exporters' banker had certified receipt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....te as in January 2003. This inordinate delay on the part of the exporters still remains unexplained. It is further submitted, even after completion of exports, it is open to the Department to invoke Section 113 of the Customs Act for penalizing the erring exporters and their abettors. In this connection, reliance is placed on a judgment of the Calcutta High Court (Full Bench) in the case of Euresian Equipment and Chemicals Ltd. and Others v. Collector of Customs and Others - 1980 (6) E.L.T. 38 (Cal.) and another judgment of the same Court (Single Bench) in the case of Rajan Ghoshal v. Union of India - 2002 (148) E.L.T. 3 (Cal.). It is also pointed out that the Revenue's view point on the substantive issue is also supported by the judgment o....