TaxTMI 
TaxTMI 
2013 (3) TMI 641
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....ied out under 14 invoices and 56 shipping bills. The petitioner claims that the export value was Rs. 27.05 crores of which only a partial amount was realised. The petitioner states that exports have been carried out between 26 March 2008 and 22 September 2008. The export proceeds should have been received within one year and despite a follow up the foreign buyers had not remitted the proceeds. The petitioner obtained a duty drawback of Rs. 3.04 crores. In these proceedings the petitioner has sought to challenge two communications; (i) A letter dated 18 May 2010 of the Deputy Commissioner of Customs to the Vijaya Bank seeking a disclosure of certain documents pertaining to the transactions carried out in the current account and directing the....
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....rawback of Rs. 31 per piece which was the maximum amount which could be claimed at the rate of 8.80% of the FOB value with a cap value of Rs. 31 per piece. The petitioner claimed a total duty drawback of Rs. 3 crores of which Rs. 2.95 crores was availed of against a declared export value of Rs. 31.12 crores in respect of goods exported under 56 shipping bills filed during the period from 14 July 2008 to 19 May 2009. A chart which has been annexed to the affidavit in reply indicates that several firms, including Nitin Exports of which the petitioner claims to be a proprietor, were involved in the export of goods for a total declared FOB value of Rs. 111.53 crores against which a remittance of Rs. 20.19 crores was received leaving a balance r....
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....he transactions in the current account of Vijaya Bank and stated that apart from having visited the bank for the opening of the account, he had merely signed blank cheques under the instructions of Pradeep Mehta at whose instructions all the transactions were carried out. Moreover it has been stated that out of the aggregate deposits related to the sale proceeds of Rs. 8.45 crores in the account, a sum of Rs. 6.60 crores was utilised for the purchase of gold bullion. The petitioner stated that it was Pradeep Mehta who had purchased the gold and that he had no knowledge of those transactions. The petitioner claimed that he had received an amount of Rs. 30 to 35 thousand from Pradeep Mehta in instalments of Rs. 5000/- from time to time. Since....
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....that they are liable for confiscation under the Act. 5 The Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 contain inter alia provisions for the recovery of the amount of drawback where export proceeds are not realised. Sub-rule 1 of Section 16A provides that where sale proceeds in respect of export goods have not been realised by the exporter in India within the period alleged under the FEMA 1999 and drawback has been paid to an exporter, such drawback can be recovered in the manner specified thereunder. Sub-rule 2 contemplates the issuance of a notice to show cause to an exporter to produce evidence of the realisation of the export proceeds and when he fails to do so, within a stipulated period, a competent officer ....
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....therwise liable for confiscation or that the seizure of the account would be useful for or relevant under the provisions of the Act, the Court directed the authorities to pass an appropriate order within a stipulated period. 7 In the present case, sufficient material has been placed on record to establish the linkage between the monies which have been held in the bank account with the modus operandi of illegally obtaining the benefit of a drawback by showing an inflated FOB value of exported goods where only a partial amount of the sale proceeds has been repatriated to India. At least at this stage the case of the department that the entire operation has been controlled, managed and directed by Pradeep Mehta cannot be rejected. As a matt....