KULBHUSHAN GOYAL Vs. UNION OF INDIA AND OTHERS

JUDGEMENT

(1.) The petitioner seeks a writ of certiorari to quash an order dated 21.11.2016 sanctioning a refund of Rs.15 lakhs under section 27(1) of the Customs Act, 1962 (for short, "the Act"), but ordering the same to be appropriated towards the petitioner's liability arising out of an order dated 25.04.2016.

(2.) The petitioner manufactures and exports bicycle parts. He carried on business in the firm named and style of M/s Monte International, M/s Monte Metals and M/s M.K. International as the sole proprietor thereof. In respect of the goods exported by him, he claimed a duty drawback under sections 74 and 75 of the Act read with the Customs and Central Excise Duties Drawback Rules, 1995 (for short, "Duties Drawback Rules").

(3.) The Directorate of Revenue (DRI) initiated an investigation against the petitioner and concluded that he had misdeclared the value of the goods and that the goods actually exported were spurious or junk and that the petitioner had accordingly wrongly availed the benefit of duty drawback. Based on this opinion, the DRI issued a notice dated 31.03.2015 under rule 16 of the Duties Drawback Rules, calling upon the petitioner to show cause why the declared value should not be rejected and the goods not be held liable to confiscation. The petitioner was also called upon to show cause why the drawback of about Rs.60 lakhs should not be disallowed and recovered from him. The adjudicating authority by an order dated 21.03.2007 confirmed the demand of drawback of about Rs.60 lakhs and imposed a penalty of Rs.13 lakhs. The petitioner filed an appeal before the Customs Excise & Service Tax Appellate Tribunal.