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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.ANAND VENKATESH
Best Fabrics rep.by Mrs.Jaya Vaidhyanathan – Appellant
Versus
Chief Commissioner of Customs, Customs House – Respondent
| Table of Content |
|---|
| 1. background on petitioner's export claims (Para 1 , 3 , 4 , 5) |
| 2. arguments on entitlement to interest (Para 6 , 7) |
| 3. interpretation of section 75a (Para 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 4. procedural history and previous orders (Para 15 , 16 , 17 , 18) |
| 5. conclusions on statutory rights to interest (Para 19 , 20 , 21 , 22) |
| 6. final order to pay interest on drawback (Para 23) |
ORDER :
N.ANAND VENKATESH, J.
1. This writ petition has been filed challenging the proceedings of the third respondent dated 13.6.2024 and for a consequential direction to respondents 4 and 5 to pay the statutory interest amount on delayed payment of drawback made by them from 12.10.1994 as directed by the second respondent vide orders dated 14.9.2020 and 27.7.2022.
2. Heard both.
3. The case of the petitioner is as follows :
(i) The petitioner was exporting garments during the period 1992-1994 and was also importing ancillary goods. At that point of time, the petitioner availed Duty Entitlement Exemption Certificate (DEEC), which was also known as advance licence as incentive for the exports made by the petitioner in lieu of drawback amount payable against exports under 69 shipping bills.
(ii) Some disp
Interest on delayed drawback payments is statutory, arising from the date of claim submission, regardless of administrative delays. Section 75A of the Customs Act mandates this entitlement.
Interest on amount of duty drawback paid – Respondent is entitled to refund of duty drawback as a deemed export under Duty Drawback Scheme.
The court upheld the rejection of duty drawback claims due to insufficient cause for delays, affirming that timely applications are necessary under statutory provisions.
The exporter/appellant’s fault here is that it did not file the requisite declaration. In all other respects, i.e. as to whether they conform to the description in the shipping documents and the valu....
The petitioner is entitled to interest at 6% per annum on delayed refund from the date of application, as per statutory provisions of the Customs Act.
Availing a concession under Notification 27/02 exempts the importer from paying the entire customs duty, and thus, the importer is not entitled to any drawback under Section 74 of the Customs Act, 19....
The duty drawback availed by the petitioner was required to be refunded as the export proceeds were not received, and the provisions of the Customs Act and Drawback Rules were applicable in determini....
Duty drawback payments are deemed never allowed if the sale proceeds are not received within the time specified by law.
Duty drawback on deemed exports is available without needing to furnish actual customs duty payment evidence if All Industry Rates are specified, irrespective of prior cenvat credit claims.
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