Dismissal of Customs Appeal on Limitation Set Aside: Madras HC Allows Reconsideration of Duty Drawback Claim Upon Full Deposit [Read Order]

The Madurai Bench of the Madras High Court has set aside the dismissal of the firm’s customs appeal on the grounds of limitation and remanded the matter back to the customs authorities for reconsideration.

The Court directed the reconsideration of the petitioner’s duty drawback claim, conditional upon the full deposit of the disputed amount of ₹2,59,517 within thirty days.

The writ petition was filed by M/s Sangeetha Tex, represented by its proprietor K. Subramanian, challenging an order dated 27.11.2024 passed by the Commissioner of GST and Central Excise (Appeals), Coimbatore. The appeal had been rejected solely on the ground that it was filed beyond the limitation period prescribed under Section 128 of the Customs Act, 1962.

The petitioner submitted that the order in original dated 22.09.2020 was actually received much later on 16.02.2023, and the delay in filing the appeal occurred due to the petitioner’s ill health.

The department, citing Supreme Court cases Singh enterprises Vs CCE reported in (2008) 3 SCC 70 and in the case of CCE and Customs Vs.Hongo India (P) Limited, submits that there is no merit in the present writ petition.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The court said that “The writ petition filed by the petitioner as such is not maintainable as the order that has been passed by the Appellate Commissioner is strictly in accordance with the limitation prescribed under the Customs Act, 1962. Therefore, on this count, the impugned order passed by the Appellate Commissioner cannot be interfered with.”

However, Justice C. Saravanan, in the interest of justice, considering that the petitioner’s willingness to make deposit and as the matter is on the export incentive, rescued the petitioner by directing to remit the whole disputed amount of Rs.2,59,517/- within a period of thirty days from the date of receipt of a copy of this order.

The petitioner was also directed to file requisite documents to substantiate that indeed the petitioner had received the exports made in respect of which the duty drawback was paid to the petitioner earlier.

The court instructed the petitioner to cooperate with the respondents by filing the relevant Bank Realization Certificate to substantiate that the export made by the petitioner in respect of which the duty drawback was sanctioned has been realized. The amount to be deposited will be refunded to the petitioner if the proceedings are dropped.

Subject to the above, the impugned order stands quashed and the case is remitted back to the second respondent to pass fresh order, said the bench.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates