A duty drawback of ₹60 lakh was given to Supreme Exporters. Subsequently the Commissioner of Customs issued a show cause notice for the recovery of the duty drawback stating that is was given erroneously. However, the ex

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2021
A duty drawback of ₹60 lakh was given to Supreme Exporters. Subsequently the Commissioner of Customs issued a show cause notice for the recovery of the duty drawback stating that is was given erroneously. However, the exporter filed an application for settlement against the order before the Settlement Commission. The Commissioner of Customs argued that the Settlement Commission has no jurisdiction on this issue as it involves a recovery of duty drawback not concerned with levy, assessment and collection of duty. Discuss, with the help of a decided case law, if any, whether the stand taken by the Commissioner of Customs is correct.

Answer & Explanation:

No, the stand taken by the Commissioner of Customs is not correct. The Bombay High Court in the matter of Union of India vs. Customs and Central Excise Settlement Commission held that the duty drawback or claim for duty drawback is nothing but a claim for refund of duty. It is as per the statutory scheme framed by the Government in accordance with the provisions of the Act. Therefore, the Settlement Commission has jurisdiction to deal with duty drawback and hence the argument of the Commissioner of Customs is not as per law.

Topics: Customs Act, 1962

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