SATISH GUPTA Vs. UOI

JUDGEMENT

(1.) Present appeal has been filed under Section 130 of the Custom Act by the Appellant for setting aside the impugned order dated 21st November, 2005 passed by Custom, Excise and Service Tax Appellate Tribunal, Principal Bench, Court No.II, New Delhi (herein after referred to as Tribunal).

(2.) Brief facts of this case are that five firms namely M/s Sharanpur Handicrafts, M/s Deepshikha Overseas, M/s Himgiri Overseas, M/s Stitch and Style and M/s R.S. and Co. approached M/s Sharp Cargo Movers a Custom House Agent Company (for short CHA) of which the appellant was Director for handling their export of ready made garments, under the Duty Draw Back Scheme. These firms filed 100 shipping bills for export of ready made garments. The export of ready made garments entitles the exporters to claim duty draw back at the rate prescribed under the schedule. Out of 36 containers, in respect of 100 shipping bills filed by the above mentioned exporting firms, 12 containers were detained at Mumbai port and another 10 containers were detained at Nahva Sheva Port before their placement on board on vessels bound for Dubai. The four containers which were already sailed from Mumbai Port to Dubai were called back. The contents of these containers were re-examined by the custom officers and it was found that description of the goods was not as per the declaration filed in the shipping bills. As per the shipping bills, the description of the goods were Ready Made Garments? whereas infact the goods were old and used garments. These goods were seized and it was also found that these goods were overvalued to claim the higher rate of drawback.

(3.) Show cause notices were issued for confiscation of the seized goods and for disallowing the draw back already sanctioned to the exporter and the demand for draw back was also made. In the show cause notice, proposal for imposition of penalty was also made and thereafter the adjudicating authority confiscated the garments valued at Rs. 31,39,72,656.77 declared by the exporter under Section 113 of the Custom Act and allowed the same on payment of by redemption fine of Rs.65 lacs. The adjudicating authority also ordered that no draw back shall be allowed in respect of these goods. Insofar as the Appellant is concerned, the adjudicating authority imposed a penalty of Rs.1 lac.