Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 › Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.

Rule 16. Repayment of erroneous or excess payment of drawback and interest

Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

Official text

Rule 16. Repayment of erroneous or excess payment of drawback and interest. — Where an amount of drawback and interest, if any, has been paid erroneously or the amount so paid is in excess of what the claimant is entitled to, the claimant shall, on demand by a proper officer of Customs repay the amount so paid erroneously or in excess, as the case may be, and where the claimant fails to repay the amount it shall be recovered in the manner laid down in sub-section (1) of section 142 of the Customs Act, 1962 (52 of 1962).

Judgments on Rule 16

  • Haji S International vs Commissioner Of Customs-Air Cargo… — CESTAT, 30 Apr 2026. Where the repealing 2017 Drawback Rules contain a specific saving provision in rule 20(2), section 159A of the Customs Act does not apply, and recovery of drawback under rule 16 or 16A of the repealed 1995 Rules cannot…
  • Manasa Impex Services vs Commissioner Of Customs And Central Excise, Coimbatore) With — CESTAT, 21 Aug 2025. A customs broker's failure to perform duties under CHALR attracts disciplinary action under CHALR alone; a penalty under section 114 of the Customs Act requires proof of abetment or active collusion — involvement beyond…
  • Rajbir Singh vs Union Of India & Ors. — Delhi High Court, 8 Apr 2025. Where Rule 16 of the Duty Drawback Rules prescribes no period of limitation, the general three-year limitation cannot be presumed to apply by default, especially where there are strong suspicions of fraudulent availment…
  • M/S Jairath International And Another vs Union Of India And Others — Punjab-Haryana High Court, 4 Oct 2019. The customs department has no power under Rule 16 of the Drawback Rules, 1995 or the Valuation Rules, 2007 to re-assess a shipping bill duly assessed at the time of export, because goods already exported are not 'export…
  • International Clothing House vs The Assistant Commissioner Of Customs — Madras High Court, 25 Sep 2026. Where the law prescribes no time limit for recovering drawback, customs must act within a reasonable period (generally up to three years) unless fraud or suppression is alleged.
  • Himalyani Gupta vs Commissioner Of Customs (Air Cargo… — CESTAT, 24 Aug 2026. Section 113 authorises confiscation of only 'export goods' (section 2(19)) — once goods are exported they cease to be export goods and become exported goods — so penalties under sections 114 and 114AA cannot stand…
  • M/S Sultan Tanneries And Leather Products vs Union Of India And 3 Othes — Allahabad High Court, 7 Apr 2022. An officer appointed by the Board as common adjudicating authority remains a 'proper officer'/officer of Customs competent to adjudicate the show cause notice assigned to him, and there is no right to cross-examine…
  • M/S Narula Tools International vs Commissioner, Commissionerate Of… — Punjab-Haryana High Court, 18 Oct 2019. A show cause notice issued after 1.10.2017 invoking Rule 16 of the repealed Drawback Rules, 1995 to recover drawback or reassess the value of goods already exported is unsustainable, both for want of saving under Rule…
  • Century Knitters (India) Ltd. And… vs Union Of India And Others — Punjab-Haryana High Court, 18 Oct 2019. A show cause notice issued after 01.10.2017 invoking Rule 16 of the repealed Drawback Rules, 1995 is not sustainable in view of Rule 20(2) of the Drawback Rules, 2017, the 1995 Rules contain no mechanism for raising…
  • Zee Knits And Weaves Private Limited And… vs Union Of India And Ors — Punjab-Haryana High Court, 18 Oct 2019. A demand of duty drawback under Rule 16 of the Drawback Rules, 1995 pursuant to a show cause notice issued more than five years after export/assessment or after 01.10.2017 (when the 1995 Rules stood repealed) is not…
  • M/S Famina Knit Fabs vs Union Of India And Others — Punjab-Haryana High Court, 20 Sep 2019. A demand of duty drawback as erroneously or excessively availed is bad in law where the rule invoked (Rule 16, Drawback Rules, 1995) prescribes no machinery or procedure for determining and demanding such drawback, and…