Page 240 - ELT_1st June 2020_VOL 372_Part 5th

774 EXCISE LAW TIMES [ Vol. 372

 The tariff classification of Ductile Iron Castings as given under the
All Industry Rate of Duty Drawback Schedule for 2011-12 and 2012-
13 is 732515 (when cenvat facilities is availed) and the rate of duty
drawback is 2% on the FOB Value;
 For the period Oct, 2011-Jan, 2013, they had mentioned the descrip-
tion of the product as “Ductile Iron Castings” (rough/machined);
 In certain cases, the CHA while filing the Shipping Bill mentioned
wrong tariff classification as 7325 01 & 7325 10 instead of 7325 15
and claimed excess Duty Drawback;
 The mistake had occurred inadvertently due to pressure of work on
domestic clearances and the company staff could not go through the
actual rate of drawback claimed and received along with interest
shortly.
1.6 The investigation further revealed that :
• As per the General Rules for the interpretation of the First Schedule
to the Customs Tariff Act, 1975 the description of the export product
“Ductile Iron Casting (Rough/machined)” is specifically classifiable
under “7325 15”
• The tariff item classification 7325 01 adopted by the applicant in cer-
tain shipping bill was erroneous and wrong;
• The applicant had misdeclared their export product “Ductile Iron
Casting (Rough/machined)” in the shipping bills under tariff item
classification 7325 01 instead of 7325 15 of AIR Duty Drawback
Schedule and thus claimed ineligible excess duty drawback of
Rs. 6,63,062/- from various customs ports during the period 2011 to
2013;
• The applicant by not furnishing the correct particulars regarding the
tariff item classification of the export product in the shipping Bills
and other export documents failed to make a true declaration;
• The act of omission to declare correct tariff item classification of the
export product as per the AIR Duty Drawback Schedule in the im-
pugned shipping bills resulted in excess claiming of duty drawback;
• The total excess/ineligible drawback availed by the applicant on the
said export made through different port thus has been worked out
to Rs. 6,63,062/- [Customs House, Tuticorin (Rs. 2,41,812/-), Chen-
nai Seaport (Rs. 4,19,652/-) and ACC Coimbatore (Rs. 1,597/-)].
1.7 Admitting the offence, the applicant paid the ineligible Duty Draw-
back (with part interest Rs. 11,097/-) of Rs. 6,74,159/- under challan dated 31-3-
2013. In addition to the data of Shipping Bills filed by the applicant from 2011 to
2018 was obtained from EDI, Chennai and scrutinized. It revealed that in another
28 Shipping Bills, the applicant had claimed ineligible drawback as mentioned
above which is worked out to Rs. 1,05,875/-.
1.8 The applicant paid Rs. 4,19,652/- towards the ineligible Drawback
claimed for 72 Shipping Bills (pertaining to the period 17-10-2011 - 17-4-2012)
that were processed at Chennai sea port and interest Rs. 38,025/-. The ineligible
drawback yet to be paid worked out to Rs. 1,05,875/- for the 28 Shipping Bills

EXCISE LAW TIMES  1st June 2020  240