Promising Exports Limited Vs Development Commissioner (CESTAT Kolkata)
Customs, Excise and Service Tax Appellate Tribunal, Kolkata Bench decided two connected appeals challenging orders passed by the Development Commissioner, Falta Special Economic Zone (FSEZ), which had rejected supplementary duty drawback claims as time-barred under Rule 15 of the Customs, Central Excise Duties & Service Tax Drawback Rules, 1995. The appellant, an export-oriented company, had supplied men’s cotton knitted vests and T-shirts to an FSEZ unit in February 2003 under duly endorsed invoices and claimed duty drawback in July 2003. The original drawback claim was processed, and part payment was made in March 2004.
Subsequently, the appellant sought re-valuation and reconsideration of the drawback amount and repeatedly reminded the authorities. The FSEZ authorities referred the matter to the Apparel Export Promotion Council (AEPC), which, by letter dated 25 September 2007 (received on 5 October 2007), revised the valuation of the exported T-shirts. Based on this re-valuation, the appellant requested payment of the balance drawback and, at the instance of the authorities, filed supplementary drawback claims on 3 January 2008 under Rule 15.
As the claims were not sanctioned, the appellant approached the Calcutta High Court, which directed the Development Commissioner to decide the matter by a reasoned order. The Development Commissioner, however, rejected the claims in December 2017 as time-barred. Appeals before the Commissioner (Appeals) were held to be not maintainable due to lack of jurisdiction, following which the High Court granted liberty to approach the Tribunal.
