Simran Exports Vs Commissioner of Customs (Export) (CESTAT Delhi)
CESTAT Delhi held that proceedings to recover the drawback under Rules 16/16A of the Drawback Rules are in the nature of execution proceedings hence they cannot be used to modify the value in the Shipping Bills.
Facts- The appellant is an exporter. It had exported garments of declared FOB value of Rs. 1,06,84,417/- on 24.10.2009 and claimed drawback as applicable and was also granted drawback accordingly. Thereafter, the Directorate General of Revenue Intelligence initiated investigation and concluded that the goods were over invoiced with a view to avail ineligible drawback. Based on statements of various persons recorded u/s. 108 of the Customs Act, 1962, investigations into the remittances for the exports and the invoices for the same export consignments filed with the Delhi Chamber of Commerce to obtain the Country of Origin certificates, DRI concluded that the exported garments were actually of inferior quality and they were exported by over invoicing to avail ineligible drawback.
The Joint Commissioner issued Show Cause Notice dated 21.1.20214 to the appellant. Deciding the proposals in their SCN, the Additional Commissioner passed the OIO confiscating the goods exported by 8 shipping bills u/s. 113 (d) and 113 (i) read with section 50 of the Act. Since the goods had already been exported and were not available, he did not impose any redemption fine. He also ordered recovery of the drawback under Rule 16 of the Customs and Central Excise Duties Drawback Rules, 1995 along with interest and imposed penalties on the appellant u/s. 114 (iii) and 114AA of the Act and imposed penalty on Shri Naveen Kumar Goel u/s. 114 (ii) and 114AA of the Act.
