Duty Drawback and RoDTEP Claims Withheld Since 2017: Madras HC Directs Authorities to Act on Exporter’s Grievance Against ‘Risky Exporter’ Status [Read Order]

The writ petitions were filed by the petitioner seeking a direction to the customs authorities to release benefits pertaining to 177 shipping bills and to prevent any further suspension or withholding of such incentives in future exports.

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The petitioner’s counsel submitted that the exporter had been compliant with all requisitions issued by the department. A show cause notice dated 18.03.2020 was served, seeking documentation for auditing the Integrated GST (IGST) refund claim.

The petitioner furnished all the required details, including the ones requested in subsequent communications, such as the Annexure A data on 18.02.2021, which was re-submitted on 18.05.2022, and further proofs related to the date of export against tax invoices, submitted on 31.12.2022.

Despite repeated compliance, the authorities neither cleared the refund claims nor lifted the alert labeling the exporter as a "risky exporter".

It was also brought to the Court’s notice that the petitioner’s books of accounts were audited on 15.03.2023, and tax objections were raised, which the petitioner addressed. However, there was no further progress in disbursing the refund or removing the adverse classification.

The petitioner contended that being labeled a “risky exporter” had resulted in rigorous and repeated physical inspections of export consignments, leading to damage to goods and packaging, thereby adversely affecting their trade operations.

The counsel for the customs department submitted that if the Court directed the petitioner to submit a formal representation, the same would be duly considered and disposed of within a time frame set by the Court.

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Justice Krishnan Ramasamy, taking note of the submissions and the documentation furnished by the petitioner over the years, the Court directed the petitioner to file a fresh representation before the concerned authorities seeking removal of the alert status.

The respondents were further directed to consider the representation on its merits, in accordance with law, and to pass a reasoned order after affording an opportunity of personal hearing to the petitioner.

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