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2014 (1) TMI 531 - AT - CustomsRecovery of duty draw back excise portion granted earlier to the merchant exporter on the gound that manufacture has got the refund of cenvat credit - Assessee partially paid the duty - False declarations - Whether the demand is to be sustained in view of para (iv) of Circular 17/97-Cus. and para (vi) of Circular 64/98-Cus. - Held that:- As may be seen from para 1(iv) of Circular 17/97-Cus. and para 1(vi) of Circular 64/98-Cus. there was no question of taking any declaration from merchant-exporters who buy goods from the open market as in the case of this appellant but the drawback was supposed to be restricted to the customs portion only. However Revenue chose to grant drawback for excise portion also and after lapse of five years to one year, the drawback amounts granted on various shipping bills have been demanded to be paid back. There is also an argument that this appellant is being singled out for such treatment. This argument is relevant not in the sense whether a wrong can be corrected in the hands of one when others go scot free but in the context that there was a bona fide belief because of the circulars from 2001 onwards that they were eligible for the impugned drawback. Court is not inclined to confirm such huge liability for past periods based on Circulars which were in the knowledge of the department and which were not implemented. We would like to rely more on the legal provisions. The only legal provision relied upon is Rule 3 of the Drawback Rules. We agree with the interpretation to this Rule given by the Board in Circular 16/2009-Cus. Interpretation is not applicable from date of issue of Circular 16/2009-Cus. because the Rule has remained the same except for amendment on 13-7-2006, to take care of incidence and rebate of Service Tax - Decided in favour of assessee.
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