Case Law Details
Style Garments Vs Commissioner of Customs (Madras High Court)
Introduction: In a recent judgment, the Madras High Court quashed an impugned order that denied Style Garments the benefits of duty drawback. The Court pointed out that the relevant Bank Realization Statement (BRS) had been uploaded in the portal but was not considered by the authorities. This article delves into the intricate details of this landmark judgment to understand its ramifications.
The Facts of the Case: Style Garments, the petitioner, had exported goods and was eligible for duty drawback benefits. However, the respondents denied these benefits, stating that the necessary documents were not submitted. Style Garments argued that the Bank Realization Statement had been uploaded as far back as 2013, and the respondents had not verified the same before passing the impugned order.
Legal Arguments Presented: B.Vijay Karthikeyan, the learned counsel for Style Garments, contended that Bank Realization Statements used to be granted manually until 2000. After that, it has been the bank’s duty to upload these statements into its portal. The respondents should have verified this information before making their decision.
Inadequate Procedure by Authorities: One of the notable aspects of this case was the absence of a Show Cause notice issued to the petitioner. Style Garments was not in a position to present its arguments before the authorities as a result, which the Court found to be a procedural lapse.
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