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2016 (1) TMI 286

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..... ss draw back claims. As pointed out by the counsel for the petitioner even in cases where the alleged irregularities were noticed by the department at the outset at the time of import, till date no show cause notices have been issued and presumably therefore, the investigation is not completed. In cases of export consignments, which are the basis of draw back claims, the department has not stated the stage of investigation and the nature of materials so far collected. May be at this stage, the department would not like to reveal such facts nor we insist making the same part of record. In any case, the department cannot indefinitely delay the consideration of rebate claims of the petitioner. All the petitions are disposed of with the .....

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..... sdeclaration of weight and also misclassification of the product. On such basis the department seized such goods. However, with the intervention of the High Court and in some cases by CESTAT, goods were released on furnishing bond for the full value of goods. 5. Case of the petitioner is that in the present case, the raw material was imported without any allegations of misdeclaration of weight or classification by the department. The export was also completed as per rules without any objection by the department. In that view of the matter it is simply not open for the department to withhold draw back claim. Counsel for the petitioner drew our attention to sections 74, 75 and 75A of the Customs Act to contend that delayed payment of draw .....

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..... ies and having perused the documents on record, we are of the opinion that the department cannot indefinitely delay or suspend the consideration of the draw back claims of the petitioners. In any case, it may be open for the department to inquire into full details of import and export which are the basis of the claim of duty draw back. If in the present case, therefore, the department found that in subsequent imports there were alleged irregularities, it may also be open for the department to, for a reasonable period, delay the consideration of draw back claims pending such investigation. However, by no means this so called pending investigation can be the basis for indefinitely refusing to process draw back claims. As pointed out by the co .....

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