The Delhi High Court held that Bank Realisation Certificates (BRCs) are not conclusive evidence of genuine export proceeds. The court emphasized that customs authorities must conduct independent verification to determine export authenticity.
Bank Realisation Certificates Not Conclusive Proof of Export: Delhi HC
The Delhi High Court has ruled that Bank Realisation Certificates (BRCs) do not constitute conclusive proof of genuine export proceeds. In a significant development for exporters, the court observed that while BRCs are relevant evidence, they do not preclude customs authorities from conducting further inquiry into the authenticity of export transactions.
The court noted that the mere issuance of a BRC by a bank does not establish that goods were actually exported or that payment was made for legitimate commercial reasons. Authorities must assess the entire transaction chain, including shipping documents, end-use verification, and financial flows, to determine if the export was genuine.
"A BRC is only a piece of evidence, not conclusive proof,"the court stated, reinforcing the need for due diligence.
For practitioners, this judgment underscores the risk of relying solely on BRCs for export claims. Exporters must maintain comprehensive documentation, and customs litigators should anticipate deeper scrutiny in anti-dumping and export incentive cases. The ruling may influence pending assessments under the DFIA and MEIS refund disputes.
Citations
- Customs Act, 1962