Drawback Limitation for SCN under Drawback Rules, 1995 and saving of SCNs, for earlier period, issued after Drawback Rules, 2017
The Supreme Court has stayed the operation of the Punjab & Haryana High Court’s 2019 decision wherein the High Court had held that any notice issued under Rule 16 of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 beyond 5 years from the date of export is barred by limitation. It had observed that the department cannot open any assessment at its whims and fancies. The High Court had further observed that Rule 20(2) of Drawback Rules, 2017 does not deal with drawback claims filed and sanctioned prior to 1 October 2017 and does not save recovery proceedings of already paid drawback. It had however noted that had there not been Rule 20(2) then Section 159A of Customs Act, 1962 would have saved all the rights and liabilities arising out of the 1995 Rules
FULL TEXT OF THE SUPREME COURT JUDGEMENT
1. Issue notice on the application for condonation of delay in filing the Special Leave Petition and on the Special Leave Petition, returnable in six weeks.
2. Dasti, in addition, is permitted.
3. Till further orders, there shall be an ad-interim stay of the operation of the impugned judgment and order of the High Court of Punjab and Haryana dated 20 September 2019 in CWP No 5111 of 2018.