Commissioner of Customs ICD Vs Siddhachalam Exports Pvt Ltd (Delhi High Court)
The Delhi High Court dismissed the Department’s appeal under Section 130 of the Customs Act, 1962, concerning the date from which interest under Section 75A is payable on delayed duty drawback. The Respondent had exported garments through seven Shipping Bills dated 24.02.2003 and claimed duty drawback of Rs. 49,75,536 under Section 75. The goods were permitted for export upon issuance of the Let Export Order (LEO) on 13.03.2003. Subsequently, the Department issued a Show Cause Notice dated 11.09.2003 questioning the declared value and proposing re-determination of the drawback. The initial adjudication and subsequent appellate proceedings were followed by a Supreme Court judgment dated 01.04.2011 remanding the matter for fresh consideration. On remand, the adjudicating authority dropped the proceedings by Order-in-Original dated 31.05.2012, and the CESTAT dismissed the Department’s appeal on 07.10.2021. The drawback amount was thereafter sanctioned on 02.04.2022.
The Respondent’s claim for interest under Section 75A was initially rejected. The Commissioner (Appeals) subsequently held that interest was payable only after expiry of one month from the Order-in-Original dated 31.05.2012. The CESTAT modified that decision and held that, under Rule 13 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, the drawback claim was deemed to have been filed on the date of the LEO, namely 13.03.2003. It consequently held that interest was payable after expiry of one month from that date until actual payment.
