Frontline Exports Pvt Ltd Vs Deputy Commissioner (Kerala High Court)
Custom duty demand for alleged non-repatriation of export proceeds: Kerala HC Grants Opportunity
Frontline Exports Pvt Ltd, a seafood export company, faced allegations of non-repatriation of export proceeds. The Kerala High Court recently addressed this issue in a significant judgment.
The petitioner, Frontline Exports Pvt Ltd, claimed duty drawback under Section 75 of the Customs Act, 1962, for exporting marine products. However, they were served with an order demanding Rs. 87,58,913 for alleged non-repatriation of export proceeds related to 374 shipping bills.
The petitioner contested the demand, asserting that they had indeed repatriated the export proceeds. They provided evidence, including a certificate from Federal Bank Limited and receipts from the Customs Department, indicating compliance.
The court considered both sides’ arguments and found the allegation of non-repatriation to be incorrect. It noted that the petitioner had provided evidence suggesting repatriation and directed the adjudicating authority to reconsider the matter, granting the petitioner an opportunity to prove repatriation.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Petitioner is a Company engaged in sea food export. The petitioner is entitled to claim duty draw back under Section 75 of the Customs Act, 1962, at the rates published in the Drawback Schedule. According to the petitioner, the petitioner had exported marine products to various buyers during the period from 06.01.2020 to 30.06.2022 and claimed duty drawback . The petitioner has now been served with Ext.P1 order confirming the demand of Rs.87,58,913/- (Rupees Eighty seven lakhs fifty eight thousand nine hundred and thirteen only), alleging non-repatriation of export proceeds against 374 shipping bills mentioned therein.
