BIRINDER KAUR BAJWA Vs. DIRECTOR (DRAWBACK) (DRAWBACK DIVISION) DEPARTMENT OF REVENUE, MIN OF FINANCE & ORS.

JUDGEMENT

(1.) THE petitioner is a garment exporter. From time to time, in respect of its exports, it has been realizing duty drawback under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. The said duty drawback, however, is subject to the petitioner realizing the sale proceeds of the export made by it within a stipulated period of time, which has been prescribed by the Reserve Bank of India to be six months in the normal course.

(2.) IN the present case, the period with which we are concerned is the exports made by the petitioner during the year 1996 -1997. The petitioner had made exports under 37 shipping bills and had taken duty drawback in respect of the said exports. The petitioner could not realize the export proceeds within the period of six months of the respective dates of shipment. However, the petitioner made an application for extension of the period of six months, which has been provided for realization of the export proceeds. In the meanwhile, that is, on 16.06.1999, the petitioner, at the instance of the respondents, paid back the duty drawback amount to the respondents. The amount of duty drawback, at that point of time, was Rs 14,58,368/ -. The petitioner was also required to pay an amount of Rs 7,57,135/ - being interest on the said amount of duty drawback paid back to the respondents. The said interest was calculated at the rate of 24% per annum. In other words, the petitioner paid an amount of Rs 22,15,503/ - on or about 16.06.1999.

(3.) RULE 16A of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, which was applicable at the relevant period, reads as under: -