Delhi HC quashes Customs Duty Recovery  against Deceased Individual, sets aside Demand of Rs. 22.6 Lakhs and Penalty [Read Order]

In a recent ruling, the Delhi High Court set aside the customs  duty recovery proceedings initiated against a deceased individual.

The petitioner Sangeeta Goyal's husband had effected a few exports exports during 2009-2014 through ICD Tughlakabad and availed benefit of the duty drawback scheme under section 75 of the Customs Act, 1962.

The petitioner’s husband died on 17.08.2018 and after his death, the activities of the firm abruptly stopped.

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A letter was sent by the respondent dated 09.02.2017 to the petitioner’s husband requesting the submission of copies of 48 pending BRCs involving a total drawback of Rs. 22,62,352. However, the postal authority was unable to locate the firm and the letter was thus returned undelivered. Upon verifying the exporter’s BRC details on the website, no e-BRCs were found for the exporter.

 A Demand cum Show Cause Notice dated 28.09.2018 was issued to the deceased Arun Goyal, directing him to explain and to show cause as to why the availed drawback amounting to Rs. 22,62,352 against the shipping bills could not be recovered from him along with applicable interest and why penalty should not be imposed upon him.

Later on, Order-in-Original dated 31.05.2019 was passed confirming the demand of duty drawback amounting to Rs. 22,62,352 along with a penalty of Rs. 1,00,000, and orders were also passed for its recovery.

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The Delhi High Court bench observed that the SCN and the order in the original was passed against a dead person and there was a failure to include legal representatives. Thus the bench held that  Order-in-Original confirming the demand of duty drawback amounting to Rs. 22,62,352 and penalty to be set aside.

The bench comprising of Justice Ravinder Dudeja and Justice Yashwant Varma allowed the writ petition and quashed the recovery proceedings initiated against a dead person.

To Read the full text of the Order CLICK HERE

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