Order Date – 7th July 2022

Facts – 

• The Appellant, Nexage Innovations, a partnership firm & anr., was informed that some of their suppliers were found in the list to be suspected suppliers therefore it was requested to reverse the credit availed from the non-existent suppliers at the earliest.
• On receipt of the same, the petitioner by letter dated 28.09.2021 informed department that they have reversed the ITC credit of Rs. 1185781.26 alongwith 15% penalty. The petitioner requested to remove the “Risky Exporter” tag from the Indian Customs, EDI System so as to enable them to start their business again. The said request has not been acted upon and at that juncture, the writ petition has been filed which was no interim order was passed.
• Aggrieved the appellant filed an appeal.

Issues – 

• Whether an appeal to remove the Tag of “Risky Exporter” from the Indian Customs, EDI System and granting the pending duty drawback under the provisions of the Customs Act, 1962 as well as the pending refund of Integrated Credit Goods and Service Tax (IGST) is entertainable?

Order – 

• The Court observed that the demand made by the Department has been complied with by the appellant; therefore, it will not augur well to continue the brand of the petitioner as a “Risky Exporter” in the absence of fresh material available on record.
• The court also held that if in the opinion of the authority, for some valid reasons, there is doubt as to the entitlement of duty drawback and pending refund, then the appellant has to be put on notice and an opportunity has to be granted.
• Therefore the court directed to remove the “Risky Exporter” tag affixed in the Indian Customs, EDI System and shall process the duty drawback claim made by the appellant as well as the refund claim of the IGST after issuing a notice if there is any doubt with the entitlement within three weeks.