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TMI Blog2015 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... (Export Promotion), Mumbai. Vide the impugned order, the learned adjudicating authority has ordered for recovery of drawback amount of Rs. 94,75,000/- from M/s. Nisum Export & Finance Pvt. Ltd., Rs. 53,07,600/- from M/s. Nisum Global Ltd. and Rs. 3,40,82,272/- from M/s. Mehul Exports under Rule 16 of the Customs & Central Excise Duty Drawback Rules, 1995. The claim for drawback for an amount of Rs. 15,50,000/- in respect of four shipping bills filed on 18-11-1998 have been rejected. A fine of Rs. 24.00 lakhs, Rs. 18.00 lakhs and Rs. 85.00 lakhs have been imposed on M/s. Nisum Exports & Finance Ltd., M/s. Nisum Global Ltd. and M/s. Mehul Exports. The exported goods have been held liable to confiscation under the provisions of Section 113(d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction of drawback, it cannot be presumed that notices for recovery can be issued at any point of time. In the absence of a specific time-limit stipulated in the law, the notice for recovery of drawback has to be issued within a reasonable period of time, which has not been done in the present case. Reliance is placed on the decision of the Hon'ble High Court of Gujarat in the case of Dadri Inorganics Pvt. Ltd. v. CC - 2010 (260) E.L.T. 61 (Guj.) and the decision of the Hon'ble Bombay High Court in the case of Hindustan Lever Ltd. v. UOI - 2011 (264) E.L.T. 173 (Bom.) = 2011 (24) S.T.R. 97 (Bom.). In these decisions it has been held that a reasonable time limit has to be read into the law where no specific time limit has been prescribed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y time limit and consequently, the appellant also would be liable to penalty. 4. We have carefully considered the submissions made by both the sides. 4.1 From the records, it is seen that the demands for recovery of erroneously sanctioned drawback has been made after a lapse of more than seven years. As held by the Hon'ble High Court of Gujarat in the case of Dadri Inorgaics Pvt. Ltd. case (cited supra) and also by the jurisdictional High Court of Bombay in the case of Hindustan Lever Ltd. in the absence of any period of limitation, it is required that every authority is required to exercise the power within a reasonable period. The reasonable period prescribed in the Customs Act is one year, where there is no wilful misstatemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manual does not lay down any time limit required to be adhered in respect of actions in personam. Thus, the liability to penalty without attracting any time limit is a matter which needs deeper and careful consideration. In this view of the matter, even though the appeals are listed for final disposal, we are only considering the stay petition at this point of time as both sides have to be given adequate time to canvas their view point on this important issue. Inasmuch as the demands for erroneously sanctioned drawback is hit by time-bar, the appellant has made out a strong case for grant of stay. 4.3 The miscellaneous application is for stay of the recovery proceedings initiated by the department against the appellant by attaching th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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