Page 245 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] IN RE : INDO SHELL CAST PVT. LTD. 779

tax liabilities along with interest and seeking immunity from penalty and prose-
cution.
6.5 Shri C. Mohan Gopu, DC, Drawback, appeared on behalf of the De-
partment. Commissioner vide his report dated 2-1-2019 has admitted that the
party has paid the ineligible drawback of Rs. 1,05,875/- and interest amount of
Rs. 38,025/- on 18-9-2018. The applicant vide their letter dated 10-10-2018 re-
quested for release of pending drawback after passing order without personal
hearing. Accordingly, Order-in-Original was passed on 30-10-2018 imposing the
penalty of Rs. 52,000/- under Section 114(ii) and Rs. 5,000/- under Section 114AA
of the Customs Act, 1962 and the applicant has paid the amount on 14-12-2018.
Commissioner has also enclosed two letters from the applicant, a copy of the let-
ter addressed to the Deputy Commissioner dated 10-10-2018 pertaining to the
Show Cause Notice dated 31-8-2018 that they have filed an application before the
Settlement Commission requesting for release of the pending drawback and also
copy of the letter addressed to the Deputy Commissioner dated 17-12-2018 in-
forming that penalty of Rs. 52,000/- have been paid.
6.6 The above Order-in-Original was issued upon request made by the
applicant; that he admitted that the O-in-O ought not have been issued when
settlement application is pending decision; that he further stated that as per the
directions of Commissioner an appeal has been filed before Commissioner (Ap-
peals) to set aside the instant O-in-O.
6.7 The Bench directed the Deputy Commissioner to file status report
immediately.
Post hearing submissions dated 11-3-2019 of the Deputy Commissioner of Cus-
toms, Drawback, Customs House, Chennai :
7.1 As directed by the Bench in the hearing proceedings on 12-2-2019,
the Deputy Commissioner of Customs, Drawback, Custom House vide his letter
in F. No. S. Misc 18/2017, DBK dated 11-3-2019 has reported the following :
(a) During investigation by the officers of Customs Intelligence Unit,
Coimbatore it came to notice that M/s. Indo Shell Cast P. Ltd., Co-
imbatore have availed ineligible drawback by claiming wrong clas-
sification for Ductile Iron Castings. For the period 2011-12 they have
availed Rs. 4,19,652/- and for the period 2013 they have availed
Rs. 1,05,875/- as ineligible drawback pertaining to Shipping Bills
filed at Chennai Sea Port.
(b) Admitting the offence, they have paid Rs. 4,19,652/- towards wrong
drawback availed and Rs. 38,025/- towards part interest vide TR-6
challan No. 1/2012-13, dated 31-3-2013.
(c) A draft Show Cause Notice dated 15-2-2016 was sent by Customs
Intelligence Unit, Coimbatore.
(d) The Counsel for the company attended a personal hearing with the
Joint Commissioner on 23-7-2018 and Joint Commissioner had di-
rected in the note side on 23-7-2018 that a draft SCN be put up for
approval.
(e) SCN dated 31-8-2018 was issued demanding the balance drawback
of Rs. 1,05,875/- along with interest Rs. 1,04,819/-.
EXCISE LAW TIMES  1st June 2020  245