2018 (11) TMI 1977 - AT - Customs

Availment of duty drawback on the exports - 100% EOU - show cause notice issued invoking the extended period of limitation - HELD THAT - From the record extended period of limitation is not available to the Department as the appellant had deposited on being so pointed out along with interest which is an admitted fact. Accordingly the impugned order is set aside. The appellant is entitled to consequential benefits in accordance with law. Appeal stands allowed.

Summary

The Appellate Tribunal (CESTAT New Delhi), per Hon'ble Shri Anil Choudhary, addressed whether the show cause notice dated 24th August 2015 was rightly issued invoking the extended period of limitation. The appellant, a 100% EOU, had availed duty drawback on exports from 2006-07 to 2013-14. Upon the Department's objection (letter dated 12th March 2014), the appellant voluntarily deposited the disputed duty drawback amount including interest (Rs. 54,80,710/- with Rs. 28,64,768/- interest) and informed the Revenue on 31st March 2014. The Department later issued the show cause notice proposing to confirm the demand and appropriate the deposited amount.The Tribunal held that "the extended period of limitation is not available to the Department" since the appellant had already deposited the amount with interest upon being pointed out. Consequently, the impugned order was set aside, and the appeal was allowed with the appellant entitled to consequential benefits in accordance with law.