Page 239 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] IN RE : INDO SHELL CAST PVT. LTD. 773

drawback amount claimed and received by the applicant amounting to
Rs. 5,25,527/- (Rs. 4,19,652/- + 1,05,875/-) and interest thereon.
1.2 The applicant company were manufacturers and exporters of Duc-
tile Iron casting. During the course of scrutiny of documents, it was found that
the applicant had resorted to misdeclaration of the Drawback Tariff Classifica-
tion of the export goods., viz., “Ductile Iron Casting” with intent to receive ex-
cess duty drawback, thereby claimed an amount of Rs. 6,63,062/- as excess and
ineligible drawback.
1.3 The applicant is having two manufacturing units., i.e. Unit I at A-
14, SIDCO Industrial Estate, Coimbatore and Unit II at Malumichapatty, Coimba-
tore. On the basis of intelligence that the applicant were misdeclaring the tariff
item classification of the said product under Duty Drawback scheme for availing
higher and ineligible duty drawback, the officers of CIU, Coimbatore initiated
investigation into the matter.
1.4 During the investigation, the Officers visited the premise of the ap-
plicant on 27-2-2013 and scrutinized the export related documents relevant to the
period 2011-2014. From the scrutiny, the following facts emerged :
• Out of the total sales turnover of Rs. 100 Crores during the year
2011-12, Rs. 10 Crores (Approx.), accounted for income from export.
• The applicant were availing DEPB Scheme in respect of the product,
‘Ductile Iron Casting exported till Sep, 2011 and then started avail-
ing Duty Drawback scheme with effect from 1-10-2011 for the im-
pugned goods exported through Air Cargo Complex, Coimbatore,
Customs House Tuticorin, and Chennai Sea Port as the DEPB
Scheme was withdrawn on 30-9-2011.
• From the export invoice and Shipping Bills for the period Oct, 2011 -
Jan, 2014, it was noticed that the export goods were declared as
‘Ductile Iron Casting (machined condition)”.
• In spite of specific classification available in the Drawback Schedule,
it was found that the applicant had classified the impugned goods
under Tariff item No. 7325 01 applicable to a general description
viz., “Cast Iron products (rough/machined) (not elsewhere speci-
fied)”and thereby claimed higher duty drawback of 3%/2.4% which
resulted in ineligible availment of higher rate of duty drawback due
to misclassification of the product.
1.5 Based on the findings, summons was issued and Shri R. Si-
vanandhan, Manager Finance/Taxation of the applicant firm appeared before
the Department. Statement dated 11-3-2013 under Section 108 of the Customs
Act, 1962 was recorded from Shri R. Sivanandhan on 11-3-2013 wherein, inter
alia, stated that :
 They export ductile iron casting to various buyers in US, UK, Italy,
etc. through ACC, Coimbatore, Customs House Tuticorin, Chennai
Seaport & ACC, Chennai under Duty Drawback Scheme;
 They were availing DEPB Scheme for exports till Sep, 2011 and from
Oct, 2011 onwards they were availing Duty Drawback Scheme;
 They were exporting Ductile Iron Casting to various automobiles &
hydraulic industries located at European countries and the USA;
EXCISE LAW TIMES  1st June 2020  239