Legal principle

A writ of mandamus directing a speaking order on a Section 74 re-export drawback claim cannot be granted where the claimant has not first produced the prescribed records, including the triplicate shipping bill bearing the proper officer's examination report at the time of export, to establish the identity of the exported goods.

Court decision

The Madras High Court disposed of the writ petition against the petitioner on the relief sought, holding that no mandamus could be issued because the respondents cannot pass a speaking order without the relevant records that have to be produced by the petitioner. The petitioner was given liberty to submit its reply with relevant records to the authority and canvass the issue on merits and in accordance with law. No costs were awarded and the connected miscellaneous petition was closed.

Facts

M/s. Schwing Stetter (India) Pvt. Ltd., a manufacturer of concrete mixers, concrete pumping pumps and concrete mixing batching plants under Tariff Items 84743110 and 84138190, imported components including concrete pumps, and re-exported one set of imported goods for want of use and demand under the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. It filed a drawback claim with the Deputy/Assistant Commissioner under Section 74 of the Customs Act, 1962, which was acknowledged on 29.8.2005. By letter dated 4.10.2005, the department pointed out that although a Drawback Shipping Bill was filed under the EDI system, the examination report recorded by the proper officer at the time of export, as required under Section 74 read with Rule 5(2)(a), was not produced, and the identity of the exported goods with reference to the import documents was not established. The petitioner alleged that the claim was rejected in limine without notice or personal hearing, and sought a writ of mandamus directing the respondents to pass a speaking order on its Rule 5 drawback claim.

Key provisions

• Section 74, Customs Act, 1962 — Drawback allowable on re-export of duty-paid goods
• Rule 5, Re-export of imported goods (Drawback of Customs duties) Rules, 1995 — Manner and time of claiming drawback on goods exported other than by post
• Rule 4(a)(i), Re-export of imported goods (Drawback of Customs duties) Rules, 1995 — Statements/Declarations to be made on exports other than by post