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2019 (3) TMI 1827 - SETTLEMENT COMMISSION, CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, CHENNAIExcess Duty Drawback claimed - misdeclaration of the Drawback Tariff Classification of the export goods - Ductile Iron Casting - period Oct, 2011-Jan, 2013 - demand alongwith interest and penalty - prosecution - HELD THAT:- Investigations revealed that the applicant firm had resorted to misdeclaration of Drawback Tariff Classification of the impugned goods under wrong Heading No. 7325 01 and 7325 10 with a drawback rate of 3%/2.4% instead of a specific Heading No. 7325 15 which has a rate of duty drawback of 2% of the FOB value in order to avail higher and ineligible duty drawback. Investigations culminated in the issuance of the instant SCN demanding ineligible Duty Drawback of ₹ 4,19,652/- pertaining to 72 Shipping Bills that were processed at Chennai Sea Port for the period 2011-12 along with interest of ₹ 38,025/-. Further, the SCN demanded ineligible Duty Drawback for 28 Shipping Bills processed at Chennai Sea Port from 4-2-2013 to 3-9-2013 amounting to ₹ 1,05,875/- along with interest of ₹ 1,04,819/-. Thus, the total ineligible Duty Drawback worked out to ₹ 5,25,527/- (₹ 4,19,652/- + ₹ 1,05,875/-) and interest to the tune of ₹ 1,42,844/-. The applicant in their application admitted the entire ineligible Duty Drawback availed and paid the same along with applicable interest as demanded in the SCN. An amount of ₹ 4,19,653/- demanded in the SCN was proposed to be appropriated towards ineligible drawback from the amount of ₹ 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 ineligible drawback of ₹ 1,05,875/- and interest of ₹ 1,04,819/- and ₹ 38,025/- on 18-9-2018. Interest - HELD THAT:- Interest @ 18% was calculated on ₹ 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 - 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 Revenue. Accordingly, the Bench considers it as a fit case to settle Duty Drawback at ₹ 5,25,527/- along with applicable interest. Penalty - HELD THAT:- 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 - But for the intervention and painstaking investigation by Officers of Customs Intelligence Unit, Coimbatore the ineligible duty drawback erroneously sanctioned by the Department would have gone unnoticed. The act of the applicant attracts penalty under the Sections of the Customs Act, l962 - keeping in view, the full and true disclosure of additional duty liability, co-operation extended during the investigation and the proceedings before the Settlement Commission, the Bench considers this as a fit case for extending partial immunity from penalty to the applicant. Prosecution - HELD THAT:- The Bench is inclined to consider grant of immunity from prosecution to the Applicant and Co-Applicant in as far as this case is concerned. Application disposed off.
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