TaxTMI 
TaxTMI 
2021 (8) TMI 640
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....the appellant who is the CHA under Section 114AA of the Customs Act, 1962. 2. Briefly the facts of the present case are that the M/s Aakanksha Distributors Private Limited, who is an exporter, are engaged in the export of mobile phones of different makes and models. On the basis of intelligence that the ADPL were claiming ineligible duty drawback under Section 75 of the Customs Act, 1962 investigation was launched by Customs Intelligence Unit (CIU), Bangalore. Preliminary enquiry showed that ADPL had filed three Shipping Bills dated 15-09-2016 and 16-09-2016 for the export of mobile phones to New Zealand, Hong Kong and Dubai. Verification of the Shipping Bills in question showed that the mobile phones appeared to have been manufact....
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....ce Tax Drawback Rules, 1995. It was further held that the appellant (Customs Broker) had rendered themselves liable for imposition of penalty under Section 114AA of the Act and accordingly penalty of Rs. 50,000/- was imposed on the appellant. Aggrieved by the said order, the appellant filed appeal before the Commissioner who, vide the impugned order, has rejected the same. Hence, the present appeal. 3. Heard both the parties and perused the records. 4. Learned Counsel appearing for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that penalty under Section 114AA of the Act cannot be imposed on the ....
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....s exclusively imposable in cases involving fraudulent exports. In this regard, he made reference to paras 65 and 66 of the 27th Report of the Standing Committee on Finance which is reproduced herein below: 65. The Ministry also informed as under: "The new Section 114AA has been proposed consequent to the detection of several cases of fraudulent exports where the exports were shown only on paper and no goods crossed the Indian border. The enhanced penalty provision has been proposed considering the serious frauds being committed as no goods are being exported, but papers are being created for availing the number of benefits under various export promotion schemes." 66. The Committee observe that owing to th....
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....ering the submissions of both the parties and perusal of the material on record, I find that the appellant who is the Customs Broker has only filed the shipping bills pertaining to the exports made by the ADPL Customs Intelligence Unit conducted the investigation and prima facie found that the mobile phones exported were not manufactured in India and have been manufactured in China and the exporter ADPL was not entitled to drawback under Section 75 of the Act. A SCN was issued demanding drawback of Rs. 1,20,02,815/- along with interest but after following the due process, the Additional Commissioner only confirmed the demand of drawback to the tune of Rs. 50,48,749/- as per Rule 16 of Customs, Central Excise & Service Tax Drawback Rules, 19....