The Kerala High Court granted opportunity of being heard to the petitioner in the matter based on the allegation of non-repatriation of export proceeds.
The petitioner is a Company engaged in sea food export. The petitioner is entitled to claim duty draw back under Section 75 of the Customs Act, 1962, at the rates published in the Drawback Schedule. According to the petitioner, the petitioner had exported marine products to various buyers during the period from 06.01.2020 to 30.06.2022 and claimed duty drawback.
The petitioner has now been served with the order confirming the demand of Rs.87,58,913/- ( Rupees eighty seven lakhs fifty eight thousand nine hundred and thirteen only ), alleging non-repatriation of export proceeds against 374 shipping bills mentioned therein.
The counsel appearing for the petitioner submitted that the demand raised on the basis that there is non-repatriation of export proceeds in respect of 374 shipping bills for the period from 06.01.2020 to 30.06.2022, is absolutely incorrect.
It was submitted that the notice issued by the adjudicating authority, calling upon the petitioner to produce the details was not received by the petitioner and that the certificate issued by the Federal Bank Limited will indicate that there has been repatriation of export proceeds and that wherever there has not been any repatriation, the petitioner has paid the amounts as is evident from receipts issued by the Customs Department.
The Standing Counsel appearing for the Department vehemently opposed the grant of any relief to the petitioner. It was submitted that a reading of the order will show that the demand against the petitioner was on account of the failure of the petitioner to produce necessary documents substantiating the repatriation of export proceeds.
A Single Bench of Justice Gopinath P observed that “I am of the view that the in the light of the submission of the learned counsel appearing for the petitioner that the finding that there has not been repatriation of export proceeds in respect of 374 shipping bills during the period from 06.01.2020 to 30.06.2022 is obviously a mistake. I am of the opinion that one further opportunity can be granted to the petitioner to prove before the adjudicating authority that such export proceeds have actually been repatriated. Accordingly, to provide the petitioner one last opportunity to prove before the adjudicating authority that the export proceeds have already been repatriated, the order will stand set aside.”
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