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2015 (10) TMI 30 - AT - CustomsRecovery of drawback – Demand made after lapse of seven years – Vide impugned order, adjudicating authority ordered for recovery of drawback amount under Rule 16 of Customs & Central Excise Duty Drawback Rules, 1995 – Claim for drawback for amount in respect of four shipping bills have been rejected and exported goods were held liable to confiscation and penalty was imposed – It was alleged that show cause notice was issued after lapse of more than five years and therefore, demands are unsustainable – Held that:- From records, it is seen that demands for recovery of erroneously sanctioned drawback has been made after lapse of more than seven years – High Court in case of Dadri Inorganics Pvt. Ltd. [2010 (8) TMI 320 - GUJARAT HIGH COURT] held that in absence of any period of limitation, it is required that every authority is required to exercise power within reasonable period – Reasonable period prescribed in Customs Act is one year, where there is no wilful misstatement, collusion, suppression, etc. and five years if any of these elements are present – Both these time-limits are already over and therefore, impugned demands for recovery of erroneously sanctioned drawback is hit by time-bar – Liability to penalty without attracting any time limit is matter which needs deeper and careful consideration – Revenue restrained from going ahead with attachment of property, during pendency of appeals –Unconditional waiver from pre-deposit of dues also granted.
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