Exports Proceeds realised through Shipping Bills: Madras HC quashes Duty Drawback Recovery [Read Order]
The court noted the submission of the petitioner stating that export proceeds for the disputed shipping bills had indeed been realized and offered to submit bank realization statements as proof
Madras HC – Drawback Recovery – Exports Proceeds – Goods and Services Tax – Shipping Bills – Madras HC quashes Duty – taxscan
Madras HC – Drawback Recovery – Exports Proceeds – Goods and Services Tax – Shipping Bills – Madras HC quashes Duty – taxscan
The Madras High Court recently quashed the Goods and Services Tax ( GST ) demand order demanding the recovery of duty drawbacks availed by the petitioner as exports proceeds were realised through the shipping bills.
The petitioner, Noorbudeen Shajahan, challenged the demand order, on multiple grounds, primarily disputing the validity of its service. The contested order sought recovery of the duty drawback availed by the petitioner, alleging failure to provide proof of export proceeds realization.
The petitioner argued that the impugned order was sent to their old address at Villivakkam, Chennai, despite their relocation to a new address in Thiruvallur, Tamil Nadu. This change of address had been duly communicated to the Zonal Director General of Foreign Trade and was also updated on the Importer-Exporter Code (IEC) portal. It was contended that the service of the order at the outdated address rendered it invalid.
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Respondents, in their defense, confirmed that the show cause notice dated September 19, 2017, and subsequent personal hearing notices were also sent to the old address. They further stated that the petitioner was offered opportunities to present their case during hearings on March 24, 25, and 17, 2021.
The court noted the submission of the petitioner stating that export proceeds for the disputed shipping bills had indeed been realized and offered to submit bank realization statements as proof.
Considering this, the respondents agreed to review the statements if submitted within two weeks.
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Justice Mohammed Shaffiq set aside the impugned order and directed the petitioner to file a representation along with supporting documents within two weeks.
The court further instructed the authorities to consider the representation and pass a fresh order after providing the petitioner a reasonable opportunity for a hearing. The writ petition was disposed of accordingly.
To Read the full text of the Order CLICK HERE
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