TaxTMI 
TaxTMI 
2026 (8) TMI 1155
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....ipping bills commencing from 13.05.2011 to 20.05.2011 and in the case of Latiyal Handicrafts Pvt. Ltd., the petitioner had exported handicrafts/artistic wooden furniture items under seven shipping bills commencing from 13.10.2009 to 25.05.2011. While making self-assessment on shipping bills, the petitioners have classified the goods exported under Drawback Schedule Nos.9401 and 940399 by describing such goods as handicrafts/artistic wooden furniture items. The proper classification for the shipped items falls under Drawback Schedule No.442101 under the Drawback Schedule Notification. 3. The petitioners in respect of each shipping bill, carried out self-assessment, under Section 17 of Customs Act, 1962 (hereinafter referred to as "Act of 1962"). In the said self-assessment, they described different classification instead of proper/correct classification under the drawback schedule. As a result, the excess payments of drawbacks amounts were claimed and paid to the petitioners. 4. In the Audit, they found misclassification of goods exported. Pursuant to the audit objection, the respondents issued a show cause notice dated 25.03.2013 for recovery of excess drawbacks on the premis....
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...., the impugned order is only remand order, whereby the original authority is required to reconsider the case of the respondent, and the contention which they have canvassed before this Court can also be canvassed before the original authority. Therefore, interference of this Court is unwarranted. 8. Heard both sides extensively and gone through the documents relied upon by both parties. 9. The facts which are not in dispute are that the petitioners have self-assessed based on the shipping bills. The shipping bills clearly indicate that the goods exported were handicrafts and artistic wooden furniture. In the self-assessment, they classified the goods under Drawback Schedule Nos.9401 and 940399. The respondents' stand is that the goods exported falls under Drawback Schedule No.442101. The drawback schedule with respect to above schedule contains as follows: Schedule No.9401 Seats (other than those of heading 9402) whether or not convertible into beds, and parts thereof. Schedule No.940399 Other furniture articles made out of other material including wood, bamboo or cane Schedule No.442101 Handicrafts/Artware of wood Looking at the schedule, the goods which....
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...., be reassessed to duty." "Section 18. Provisional assessment of duty:-(1) Notwithstanding anything contained in this Act but without prejudice to the provisions of section 46 and section 50:- (a) where the importer or exporter is unable to make self-assessment under sub-section (1) of section 17 and makes a request in writing to the proper officer for assessment; or (b) where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or other test; or (c) where the importer or exporter has produced all the necessary documents and furnished full information but the proper officer deems it necessary to make further enquiry; or (d) where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry, the proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer or the exporter, as the case may be, furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, between the duty as may be finally assessed or re-assessed as the ca....
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.... duty and interest, if any, paid on such duty paid by the importer, or the exporter, as the case may be, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any other person; (b) the duty and interest, if any, paid on such duty on imports made by an individual for his personal use; (c) the duty and interest, if any, paid on such duty borne by the buyer, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any other person; (d) the export duty as specified in section 26; (e) drawback of duty payable under sections 74 and 75." "50. Entry of Goods for Exportation. (1) The exporter of any goods shall make entry thereof by presenting to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the prescribed form. (2) The exporter of any goods, while presenting a shipping bill or bill of export, shall at the foot thereof make and subscribe to a declaration as to the truth of its Contents." "51. Clearance of Goods for Exportation. ....
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....wbacks paid to the petitioners were erroneous. Accordingly, the authorities proceeded to determine and recover the alleged erroneous amount. Such action is contrary to the scheme of the Act. As long as the self-assessment remains in force and has not been challenged, the payment should be deemed to have been made on the basis of such self-assessment, notwithstanding the fact that such self-assessment may have resulted from misdeclaration or misclassification. If any such misdeclaration or misclassification is subsequently found, resulting in the excess payment of drawback, the authority may have recourse to Section 17(4) of the Act of 1962 or may invoke the provisions of Section 18 of the Act of 1962 for conducting a further inquiry. 15. Admittedly, in the present case, they have not invoked the provisions under Sections 17 and 18 of the Act of 1962. They have directly proceeded under Section 75A (2) of the Act of 1962. Section 75A of the Act of 1962, is intended to recover the amount which is erroneously paid or recoverable under this act or rules made thereunder. This provision can be invoked in the present facts of the case only after crystallization of amount as consequence ....