HANDLOOM ONLY Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) ISSUE notice. Ms. Sonia Sharma, Sr. Standing Counsel accepts notice on behalf of respondent.

(2.) THE following substantial question of law arises for consideration:

(3.) THE appellant exported ready -made garments under 35 shipping bills sometime in the year 1999 in terms of the duty drawback scheme and received drawback of Rs. 36,04,057/ -. This was under the scheme which permitted it to drawback the duty, provided the export proceeds were received within the prescribed time i.e. within a time period of six months. The appellant had apparently exported the goods on this score there is no dispute. The amount to be received by the appellant was not remitted to it within the time prescribed. The RBI in respect of some of the exports extended the time of remittance till 31 -8 -2002. In these circumstances, the respondent issued a show cause notice dated 31 -3 -2003 demanding why the drawback which the petitioner had previously enjoyed ought not to be withdrawn. It is not again in dispute that between 1 -10 -2001 and 1 -10 -2005 the respondent received its export proceeds from its foreign purchaser. The appellant had filed its reply in response to the show cause notice dated 31 -3 -2003 wherein it was pointed out that the RBI was requested to seek further extension of time to fulfil the EOUC commitments. The RBI's clearance, unfortunately, was not forthcoming. In this background of the facts, the Commissioner made his order on 9 -11 -2005 directing the recovery of the amount i.e. Rs. 36,04,057/ - along with interest.