Siddhachalam Exports Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that interest u/s. 75A is payable at the rate specified in section 27A of the Customs Act from date after expiry of the period of one month of ‘let export order’ to date of payment of drawback. Accordingly, appeal allowed to that extent.
Facts- M/s Siddhachalam Exports Pvt. Ltd. has sought the quashing of the order dated 12.07.2022 passed by the Commissioner of Customs (Appeals), allowing the appeal in part by modifying the order dated 02.04.2022 passed by the Deputy Commissioner of Customs. The Deputy Commissioner of Customs had sanctioned drawback of Rs. 49,75,536/- in favour of the appellant, but the claim of the appellant for grant of interest was rejected. The Commissioner (Appeals), by the impugned order, has directed the adjudicating authority to calculate and sanction interest under section 75A of the Customs Act, 1962 for the period from 01.07.2012 till the date of payment of drawback. This appeal has been filed by the appellant with a prayer that interest should be paid to the appellant from 14.04.2003 at the rate of 18% per annum.
Conclusion- In the present case, it is not the case of the department that the documents, as contemplated under rule 13 of the Drawback Rules, had not been filed by the appellant. On the other hand, the show cause notice that was issued to the appellant raising a doubt about the value of the export goods was dropped by order dated 31.01.2005. Thus, the value of the export goods declared by the appellant was found to be correct and the Deputy Commissioner after remand of the matter by the Supreme Court also dropped the show cause notice.
