Page 241 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] IN RE : INDO SHELL CAST PVT. LTD. 775

processed at Chennai Sea Port from 4-2-2013 to 3-9-2013 and the total interest
payable thereon worked out to Rs. 1,04,819/-.
1.9 Based on the findings, the applicant was called upon to show cause
to the Deputy/Assistant Commissioner as to why :
 The ineligible drawback of Rs. 1,05,875/- in respect of the Shipping
Bills filed as per the Annexure-II to the SCN along with interest of
Rs. 1,04,819/- calculated up to 3-9-2018 and the interest of
Rs. 38,025/- (payable on the ineligible drawback claimed on the 72
shipping bills for which they have repaid only the ineligible draw-
back) should not be demanded from the applicant under Rule 16 of
the Customs, Central Excise Duties and Service Tax Drawback
Rules, 1995 read with Section 75A(2) of the Customs Act, 1962;
 The amount of Rs. 4,19,653/- should not be demanded and appro-
priated towards the ineligible drawback as shown in the SCN from
the amount of Rs. 6,74,159/- paid by the applicant under challan
dated 31-3-2013;
 Penalty should not be imposed on the applicant under Sections
114(ii) and 114AA of Customs Act, 1962 for contravening the provi-
sions of Section 50(2) of the Customs Act, 1962 read with Rule 12(1)
of the Customs, Central Excise Duties and Service Tax Drawback
Rules, 1995 by not furnishing the correct particulars regarding the
Tariff item classification of the export product in the Shipping Bills.
Averment of the Applicant :
2.1 The applicant in their application filed on 20-9-2018, inter alia, sub-
mitted that : The demand in the SCN consists of two parts;
 Demand of Rs. 4,19,653/- towards ineligible drawback claimed in
respect of 72 shipping bills;
 Demand of Rs. 1,05,875/- towards ineligible drawback claimed in
respect of 28 shipping bills;
 The applicant have admitted the mistake and paid the ineligible du-
ty Drawback of Rs. 6,74,159/- vide challan, dated 31-3-2013;
 Out of the above said amount the excess/ineligible drawback paid
towards Chennai sea port is Rs. 4,19,652/- which is acknowledged
in the SCN;
 The rest of payment were pertaining to Customs House, Tuticorin
and Air Customs, Coimbatore;
 The interest of Rs. 35,025/- in respect of the above said ineligible
drawback was admitted and the same has been paid;
 The applicant has also admitted the ineligible drawback amount of
Rs. 1,05,875/- along with interest of Rs. 1,04,819/- and paid the
same;
 With regard to the claiming of ineligible drawback, while filing the
Shipping Bills, the CHA had wrongly mentioned the tariff item
classification as 7325 01 and 7325 10 instead of 7325 15 and thereby
claimed the excess Duty Drawback;

EXCISE LAW TIMES  1st June 2020  241