GTN TEXTILES LIMITED Vs. SECRETARY TO THE GOVERNMENT

JUDGEMENT

(1.) Heard Mr.G.Natarajan, learned counsel for the petitioner and Mrs.Hema Muralikrishnan, learned Senior Standing Counsel for the respondents.

(2.) The admitted facts are the petitioner manufactures and exports readymade garments and claims drawback of excise and customs duties paid on the raw materials used in such manufacture. The claims had been made under All Industry Rate (AIR). Some of the processes engaged in the manufacture, such as 'silicon washing' and 'mercerizing' were sub-contracted by the petitioner to an entity by name Arun Processors Limited, an 100% Export Oriented Unit ( in short 'EOU'). The EOU, after completion of the processes returned the goods for further finishing to the petitioner, who carried out the final processing and thereafter, exported the same. Initially the petitioners' claim for drawback was allowed. Thereafter and invoking Notification No.31 of 1999 dated 20.05.1999, show cause notice dated 02.04.2003 was issued to the petitioner seeking to reverse the drawback granted and recover the same. Order-in-original dated 28.11.2004 was passed confirming the demand along with interest and penalty.

(3.) The petitioner challenged the aforesaid order by way of appeal and the Commissioner of Customs (Appeals), Chennai by order dated 13.5.2005 rejected the same. The same fate awaited the Review Petition filed by the petitioner challenging the order of the Appellate Commissioner before the Government of India (GOI) that dismissed the review by order dated 29.08.2006. The aforesaid order of the GOI is challenged in W.P.No.4846 of 2007.