Innovative Crafts Vs Union of India & Ors. (Delhi High Court)
Delhi High Court held that petitioner is duly entitled for the grant of duty drawback since the export proceeds have been realised within the stipulated period as prescribed in FEMA. Thus, held that freezing of bank account not justified.
Facts- Petitioner is a sole proprietorship firm, engaged in the export of handicrafts. During the period 08.12.2014 to 13.12.2014, petitioner had exported 24 consignments of brass, copper and iron handicrafts to foreign buyer M/s. Metal Masters, UAE. Petitioner availed duty drawback on the export of aforesaid 24 consignments. The drawback of Rs. 89,77,007/- was assessed and duly allowed to be credited to the petitioner’s bank.
On the basis of information, it was revealed that the exports were affected by the petitioner, having claimed to have purchased the exported goods from another firm named M/s. Maxwell Impex, which on enquiry, was found out to be non-existent. Further, it was noticed that the export proceeds against the subject exports was not from consignees but from third parties.
Show Cause Notice dated 27.06.2017 was issued to the petitioner
for the recovery of drawback availed amount of Rs. 79,45,653/- in terms of Rule 16/16A of the Customs, Central Excise Duties & Service Tax Drawback Rules, 1995 r.w.s. 76(1)(b) of the Customs Act, 1962 along with interest as applicable u/s. 75A(2) r.w.s. 28AA of the Act, which was confirmed by the Additional Commissioner of Customs vide Order-in-Original dated 31.01.2018. Penalty of Rs. 1,50,00,000/- was also imposed on the petitioner u/s. 114AA of the Act.
