Sans Frontiers Vs Assistant Commissioner of Customs (Delhi High Court)
Delhi High Court has directed the Assistant Commissioner of Customs to release withheld duty drawbacks amounting to ₹9.13 lakh to the exporter M/s Sans Frontiers. The court’s order came in a petition filed by the firm challenging the continued withholding of the drawbacks despite a stay granted by the Supreme Court in related proceedings.
M/s Sans Frontiers, an exporter of goods including imitation jewellery and handicrafts for nearly three decades, was previously operating as an Export Oriented Unit (EOU). The dispute originated concerning duty drawback claims availed by the firm during its tenure as an EOU between 2006-07 and 2013-14.
According to the petitioner, they were receiving duty drawback payments until June 2020, when the payments were abruptly stopped. The firm’s Import Export Code (IEC) was flagged with an alert on February 13, 2020, cited by the Customs Department as the reason for withholding the drawbacks. Although this initial alert was reportedly removed, the drawbacks remained suspended.
Upon inquiry through the Centralized Public Grievance Redress and Monitoring System (CPGRAMS), the petitioner was informed that the withholding was due to an alert linked to an appeal filed by the Commissioner of Customs before the Delhi High Court. This appeal, CUSAA No. 01 of 2022 (Commissioner of Customs, Air Cargo Export v. M/s Sans Frontiers), challenged an earlier order passed by the Customs Excise and Service Tax Appellate Tribunal (CESTAT).
