Delhi HC says Bank Credit Alone Does Not Establish Realisation of Export Proceeds

Delhi High Court allowed 22 Revenue appeals arising from alleged overvaluation of garment exports and receipt of export proceeds through third-party remittances. The Court held that the mere credit of money into an exporter's bank account does not establish that the amount represents sale proceeds in respect of the exported goods. Customs authorities are entitled to examine the nexus between the remittance and the underlying exports while determining drawback entitlement. The Court also held that the CESTAT had failed to adequately examine the documentary evidence, the effect of the civil decree concerning cancellation of BRCs and the statutory requirements under Section 28AAA.