2001 (11) TMI 156

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....een filed by the appellants against the impugned Order-in-Original dated 23-2-2001 passed by the Commissioner of Customs vide which he had classified the product 'Cotton Knitted Throws' under sub-heading No. 6304.01 of the CETA and also ordered for the recovery of the excess amount of drawback of Rs 12,84,256/- from the appellants besides imposing penalty of Rs. 5 lakhs. 2. The appellants expor....

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....e served with a show cause notice for the recovery of the excess drawback amount received by them. The penalty was also proposed to be imposed on them. The appellants contested the correctness of the show cause notice and insisted that the goods were classifiable under sub-serial No. 61.01 of the Drawback Schedule and they had rightly claimed the drawback accordingly. They contested the classifica....

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....tted Articles manufactured from Knitted Fabrics; 100% Cotton Knitted Throws; and 100% Cotton Knitted Made Ups. The examination of the sample revealed that each piece was rectangular in size having dimension 50" x 60" with round corners and interlocked from all sides. The HTS No. mentioned was 6304.91.0020 (Category 369). The factory premises of the appellants was also visited to examine the manufa....

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....appellants were only entitled to drawback @ 7% of the FOB value and not @ 14% as claimed by them. The excess amount of drawback availed by them comes to Rs. 12,84,256/-. The recovery of this amount from the appellants, in our view, had been rightly ordered by the Commissioner under Rule 16(i) of the Customs and Central Excise Duties Drawback Rules, 1995 read with Section 28(i) of the Customs Act, ....