ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 25.09.2025
CESTAT Delhi- Drawback Cannot Be Denied on Exported Goods
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant judgment, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, delivered its final order on September 23, 2025, in the case of M/s Simran Exports vs. Commissioner of Customs (Export). The decision, which has far-reaching implications for exporters and customs authorities, addressed key issues related to the recovery of duty drawback, confiscation of exported goods, and imposition of penalties under the Customs Act, 1962. โ
Background of the Case
M/s Simran Exports, an exporter of garments, had declared an FOB value of โน1,06,84,417 for their consignments and claimed duty drawback accordingly. โ However, the Directorate General of Revenue Intelligence (DRI) alleged that the goods were over-invoiced to claim ineligible drawbacks. โ Following investigations, the Additional Commissioner of Customs passed an Order-in-Original (OIO) in 2017, confiscating the goods under Section 113 of the Customs Act, ordering recovery of the drawback, and imposing penalties under Sections 114 and 114AA. The Commissioner (Appeals) upheld this order in 2019, prompting M/s Simran Exports to approach CESTAT.
Source: CESTAT Delhi
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