Page 249 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] IN RE : INDO SHELL CAST PVT. LTD. 783

Rs. 6,74,159/- paid on 31-3-2013 in the SCN itself. The Revenue vide letter S.
Misc. 18/2017-Drawback dated 2-1-2019 reported that the applicant paid an inel-
igible drawback of Rs. 1,05,875/- and interest of Rs. 1,04,819/- and Rs. 38,025/-
on 18-9-2018. Interest @ 18% was calculated on Rs. 1,05,875/- in the impugned
SCN from 4-2-2018 to 3-9-2018 only whereas the payment was made on 18-9-
2018. The actual interest payable has to be worked out and paid by the applicant.
8.14 Therefore, the Bench is of the view that the applicant has made full
and complete disclosure of the duty liability before the Bench, co-operated with
the investigation and discharged their duty liability as confirmed by the Reve-
nue. Accordingly, the Bench considers it as a fit case to settle Duty Drawback at
Rs. 5,25,527/- along with applicable interest.
Penalty :
8.15 The applicant firm [has] misdeclared their export product “ductile
iron casting (rough/machined)” in the Shipping Bills under Tariff item classifica-
tion 7325 01 instead 7325 15 of Air Duty Drawback Scheme and thus claimed in-
eligible excess Duty Drawback from various Customs Ports during the period
2011-14. The said ineligible excess duty drawback is demandable along with in-
terest 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
applicant firm had not furnished the particulars regarding the Tariff item classi-
fication of the export product in the Shipping Bills and other export documents.
8.16 The applicant firm [has] failed to make a true declaration and thus
contravened the provisions 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.
Rule 12. Statement/Declaration to be made on exports other than by
Post. - (1) In the case of exports other than by post, the exporters shall at
the time of export of the goods -
(a) state on the shipping bill or bill of export, the description,
quantity and such other particulars as are necessary for deciding
whether the goods are entitled to drawback, and if so, at what rate
or rates and make a declaration on the relevant shipping bill or bill
of export that…..
8.17 Thus, it can be seen that the applicant firm has not furnished the
correct particulars regarding Tariff Classification of the export product in the
Shipping Bills. The plea of the applicant that their CHA have wrongly mentioned
the tariff classification which resulted in the applicant claim for ineligible draw-
back is not acceptable. The applicant had knowingly contravened the Provisions
laid down in Section 75 of the Customs Act, 1962 read with relevant Drawback
Rules issued by the Government of India in this behalf. It is worth mentioning
here that the applicant did not approach the Department, suo motu, for re-
crediting the ineligible duty drawback amount claimed by them.
8.18 But for the intervention and painstaking investigation by Officers
of Customs Intelligence Unit, Coimbatore the ineligible duty drawback errone-
ously sanctioned by the Department would have gone unnoticed. The act of the
applicant attracts penalty under the Sections of the Customs Act, l962. However
keeping in view, the full and true disclosure of additional duty liability, co-
EXCISE LAW TIMES  1st June 2020  249