MAHAVIR EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition challenges order dated 20/03/2002 made by the Government of India, Ministry of Finance, Department of Revenue.

(2.) The petitioner, a proprietary concern, exported various goods, including readymade garments in 37 different consignments to Germany between November,1992 to February,1994. Thereupon, the claim of duty draw back was made, approved by respondent No.3 and total draw back to the tune of Rs.7,34,681/- was allowed and paid by different cheques.

(3.) It appears that because the German buyer went bankrupt the petitioner could not realize the sale proceeds of the 37 exports made. Therefore, on 26/02/1999 respondent No.3 issued show cause notice proposing to recover the draw back amount which was allowed and paid to the petitioner by relying upon provisions of Rule 16A of Customs and Central Excise Duties Draw Back Rules, 1995 (Drawback Rules). According to respondent No.3 as the sale proceeds of the exports had not been realised within the time permitted by the Foreign Exchange Regulations Act, 1973 (including extended period) the authority was entitled to recover the draw back paid. On 18/01/2000 an addendum to the show cause notice was issued seeking to recover the draw back with interest. It is an accepted position that during Financial Year 1999-2000 the petitioner paid back the entire draw back amount by different challans.