2025-VIL-1812-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs – Confiscation of goods alleging claim of inflated amount of drawback by over-invoicing - Appellant had made export shipments of garments. The goods were alleged to be over-invoiced with the intention of claiming inflated amount of drawback - Show Cause Notice issued proposing confiscation of the goods and disallowance of the drawback - Whether the appellant is entitled to claim the drawback in respect of the shipments of garments which did not reach destination – HELD - The export were made in accordance of Protocol signed between India and Russia in the year 1992. According to which Indian Government was not required to pay the money to the Russian supplier but instead was to put the money to a special account to RBI. The Russian supplier had the right to use the money in this account for buying goods in the Indian market - As per the Drawback Rules, the moment any goods are taken out of India to a place outside India, it amounts to export, and the exporter is entitled to get the refund of duty paid on importation of such goods in the form of drawback. There is no condition in the Drawback Rules regarding the final destination of the goods. The remittances were received by the appellant, and the RBI had released the remittance in Indian rupees out of the State Credit funds, which falsified the findings in the impugned order that the goods did not reach Russia - The reliance on Rule 16A of the Customs & Central Excise Duties Drawback Rules 1995 is not appropriate as the exports in question were made prior to the coming into effect of these rules, and the provisions do not have any retrospective effect. The amount already refunded by the appellant to the department was wrongly appropriated by the adjudicating authority. The order confiscating the goods is set aside as the goods were allowed to be released provisionally – The appellant entitled to Drawback on consignments of garments exported by the appellant to a place outside India - The impugned order is set aside and the appeal is allowed
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