Manasa Impex Services Vs Commissioner of Customs (Preventive) (CESTAT Chennai)
CESTAT Chennai held that Directorate of Revenue Intelligence [DRI] has jurisdiction to issue a show cause notice [SCN] in the case of drawback. Accordingly, plea of appellant of DRI officers lacked jurisdiction failed.
Facts- Directorate of Revenue Intelligence (DRI) investigated the alleged fraudulent export activities by M/s. SSK Knit Apparels, Tirupur. It appeared that the firms were fictitious, export values were inflated, and undue drawback benefits were claimed without realizing export proceeds. A show cause notice (SCN), dated 06.10.2006 was issued by DRI to the Custom House Agent/ Customs Broker (CHA/ CB), appellant herein, for allegedly filing shipping bills without verifying declarations and other such acts facilitating the wrongful drawback claims of Rs. 1,05,81,796/-. The OIO confirmed recovery of the drawback amount along with interest from the exporter. A penalty of Rs.5,00,000/- was also imposed on the appellant herein i.e. M/s. Manasa Impex Services u/s. 114(iii) of the Act. Hence the present appeal.
Conclusion- Rule 16 of the Rules pertaining to the repayment of erroneous or excess payment of drawback and interest, states that where an amount of drawback and interest, if any, has been paid erroneously or the amount so paid is in excess of what the claimant is entitled to, the claimant shall, on demand by a proper officer repay the amount so paid. Hence in the light of the discussion above an officer of DRI would have the jurisdiction to issue show cause notices under rule 16 of the Rules also. Thus, the plea of the appellant on this issue of jurisdiction of DRI officers to issue a SCN in the case of drawback, must fail.
