Drawback available on export of gold dore bars when only additional duty paid at the time of import

AJ Gold And Silver Refinery Vs Assistant Commissioner of Customs (Delhi High Court)

Delhi High Court held that drawback benefit is duly available on export of gold dore bars on payment of only additional duty under section 3 of the Customs Tariff Act at the time of import.

Facts- The petitioner has approached this Court seeking the issuance of an appropriate writ commanding the respondents to attend to the pending drawback claim amounting to Rs. 2,15,48,344/- and for the aforesaid amount being released along with applicable interest. The respondents have neither passed a formal order rejecting the claim as laid before us nor have they released the same in terms of the application dated 06 May 2015 made in terms of Rule 12(1) of the Customs, Central Excise Duties Drawback Rules, 1995. However, it was their stand before us that since the petitioner did not pay any Basic Customs Duty on the imported articles and merely paid the additional duty as imposed in terms of Section 3 of the Customs Tariff Act, 1975, it would not be entitled to the drawback benefits as claimed.

Conclusion- Held that the Condition No. 23 of the Drawback Notification would not deprive the petitioner of the right to seek drawback benefits since the same stands restricted to goods exported in discharge of an export obligation in terms of the Export and Import Policy or the Foreign Trade Policy which provides for “duty free import”. Once the petitioner had paid the duties as contemplated under Section 3 of the Tariff Act, it could not be possibly contended that the goods were imported “duty free”. Accordingly, and for the aforesaid reasons, we find ourselves unable to sustain the objections as raised.

The writ petition shall consequently stand allowed. The respondents are hereby commanded to attend to the claim of the petitioner for disbursement of drawback benefits as claimed and release the same with due expedition.

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