Page 244 - ELT_1st June 2020_VOL 372_Part 5th

778 EXCISE LAW TIMES [ Vol. 372

Customs Act, 1962 the applicant cannot withdraw the application
filed before the Hon’ble Settlement Commission. Hence to settle the
matter, they have paid the penalties imposed and requested for re-
lease of the pending drawback.
Hearing :
6.1 The case was heard on 12-2-2019. Shri S. Ravi, Advocate represent-
ed the applicant and Shri C. Mohan Gopu, Deputy Commissioner, Drawback
and R. Ramesh, Superintendent of Customs, Drawback represented the jurisdic-
tional Commissioner.
6.2 The Learned Advocate submitted that the applicant were manufac-
turers and exporters of Ductile Iron Casting. The Show Cause Notice has alleged
that they had resorted to misdeclaration of Drawback Tariff Classification of the
impugned goods under wrong Heading No. 7325 01 and 7325 10 with a draw-
back rate of 3%/2.4% instead of a specific Heading No. 7325 15 which has a rate
of duty drawback of 2% of the FOB value in order to avail higher and ineligible
duty drawback. The impugned goods were exported through ACC, Coimbatore,
Custom House Tuticorin, Chennai Sea Port and ACC Chennai under Duty
Drawback Scheme during the period October 2011 to 2014. They were availing
EPP Scheme for exports till September 2011 and from October 2011 onwards they
started availing Duty Drawback Scheme. Thus they have claimed excess duty
drawback of Rs. 6,63,062/- during the period 2011 to 2013. Out of this, Rs.
2,41,812/- pertains to Tuticorin Customs, Rs. 4,19,652/- pertains to Chennai Sea
Port and Rs. 1,597/- pertains to ACC, Coimbatore. The applicant paid the ineli-
gible duty drawback of Rs. 6,74,159/- along with interest of Rs. 11,097/-. How-
ever, checking of data of the Shipping Bills filed by the applicant from 2011 to
2018, obtained from EDI, Chennai, revealed that the applicant had claimed ineli-
gible drawback of Rs. 1,05,875/- in respect of another 28 Shipping Bills for the
period from 4-2-2013 to 3-9-2013 and the total interest works out to Rs. 1,04,819/-
. A Show Cause Notice demanding ineligible drawback of Rs. 1,05,875/- along
with interest in respect of the 28 Shipping Bills and an interest of Rs. 38,025/-
payable on the amount of Rs. 4,19,652/- pertaining to 72 Shipping Bills were
raised.
6.3 The applicant has admitted a demand of Rs. 4,19,653/- in respect of
72 Shipping Bills and also demand of Rs. 1,05,875/- along with interest of
Rs. 1,04,819/- in respect of 28 Shipping Bills and they have paid the ineligible
duty drawback of Rs. 6,74,159/- on 31-3-2013 along with interest amount. It has
been submitted that while filing Shipping Bills, the CHA has wrongly mentioned
the classification as 7325 01 and 7325 10 instead of 7325 15 which resulted in ex-
cess claim of drawback duty. It was unintentional and was a clerical mistake on
the part of the CHA, they have accepted the wrong classification and paid the
entire amount.
6.4 Further, the applicant made an additional written submission on 8-
11-2018 informing the Deputy Commissioner vide their letter dated 20-9-2018
that an application has already been filed before the Settlement Commission
against Show Cause Notice dated 31-8-2018 but the Deputy Commissioner
passed Order-in-Original on 30-10-2018. Accordingly, they have requested the
Settlement Commission to hear the matter at the earliest. They have paid all their
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