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2013 (3) TMI 480 - HC - CustomsRecovery of duty drawback - Period of limitation - Petition has been against the order passed by the Government of India allowing the revision preferred by the Revenue and holding that the drawback paid erroneously to the petitioners is liable to be recovered under Rule 16 of the Drawback Rules, made under Section 75 of the Act. Examining the facts of the present cases in the light of the aforesaid legal position, in all these cases, drawback had been paid to the petitioners between December 1995 and August 1996. Thereafter, despite a clarification having been issued as regards the interpretation of condition (c) of the Note under SS No. 5404(1)(i) of the Drawback Schedule, no action was taken by the concerned authorities at the relevant time. It is only after a period of more than three years that show cause notices came to be issued to the petitioners seeking to recover the differential amount of drawback erroneously paid to them. - As held by the Supreme Court in the case of Collector of Central Excise, Jaipur v. M/s. Raghuvar (India) Ltd. (supra) [2000 (5) TMI 40 - SUPREME COURT OF INDIA], where no period of limitation is prescribed, the courts may always hold that any such exercise of powers which has the effect of disturbing the rights of citizen should be exercised within a reasonable period of time. Held that:- In the light of the aforesaid discussion, in the opinion of this court, though Rule 16 of the Drawback Rules does not provide for any period of limitation, a reasonable period has to be read into the said rule. As observed hereinabove, in the facts of the present case, the show cause notices which have been issued after a period of more than three years from the date when the drawback came to be paid to the petitioners, cannot by any stretch of imagination be said to have been issued within a reasonable period of time. Under the circumstances, the show cause notices have to be held to be bad on the ground of being time barred. Once the show cause notices are held to be invalid, the very substratum of all the orders passed pursuant thereto, including the impugned orders would fall, rendering the same unsustainable.For the foregoing reasons, the petitions succeed and are, accordingly, allowed.
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