Order Date – 22 February 2023

Parties: Raghav International & Others Vs Union of India

Facts –

• The Petitioners, Raghav International & Others were issued with show cause notice dated 16.03.2021 sought recovery of excess of the duty drawback so paid, during the year 2011-2015 under the provisions of Rule 16 of Duty Drawback Rules, 1995.

Issue – 

• Whether the respondent Authority can issue show-cause notice for assessment / export, after a period of six/ten years?

Order –

• The divisional bench of Hon’ble High Court relied on the decision of this court in the case of M/s. S J S International and held that in case of shipping bills as the show cause notice essentially cannot be issued beyond the period of three years of payment of the duty drawback, and that being a settled legal position, if not regarded, this Court needs to interfere.
• Thus, it was held that all these petitions accordingly, quashing and setting aside the impugned show cause notices issued by the respondent authorities, which are admittedly beyond the period of three years. Since the impugned show-cause notices are quashed by this Court, the consequent action of the respondent authorities qua those show-cause notices are also quashed.