Legal principle

A drawback claim on re-export of imported goods must be filed within the maximum twelve-month period prescribed by Rule 5(1) of the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995, and once that period expires there is no power in any authority to condone the delay, a failure which is fatal to the claim even if the Rule 4(a) defect alone might otherwise have been cured by converting the free shipping bill.

Court decision

The Tribunal dismissed the appellant's appeal, upholding the adjudicating authority's rejection of the request to convert the free shipping bill into a drawback shipping bill and of the drawback claim itself; the decision went in favour of the Revenue (Respondent Commissioner of Customs (Preventive), Patna).

Facts

M/s Voith Hydro Private Limited re-exported goods (earlier imported from an SEZ unit) to Nepal on 03.01.2019, but by mistake the shipping bill filed at the time of re-export did not mention that the goods were being re-exported under the duty drawback scheme. The appellant noticed the error while filing its drawback application on 27.02.2020 and requested the Commissioner to convert the free shipping bill into a drawback shipping bill and grant drawback. The Commissioner of Customs (Preventive), Patna rejected both the request for conversion and the drawback claim, holding that the conditions of Rule 4(a) (including physical examination at the time of re-export) were not fulfilled and that the claim under Rule 5 was filed more than thirteen months after export, beyond even the extendable twelve-month period. The appellant appealed to the CESTAT, Eastern Zonal Bench, Kolkata.

Key provisions

• Rule 4(a), Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 — Revison of Rates
• Rule 5, Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 — Determination of date from which the amount or rate of drawback is to come into force and the effective date for application of amount or rate of drawback
• Rule 4(a), Re-export of imported goods (Drawback of Customs duties) Rules, 1995 — Statements/Declarations to be made on exports other than by post
• Rule 5(1), Re-export of imported goods (Drawback of Customs duties) Rules, 1995 — Manner and time of claiming drawback on goods exported other than by post