WISHALL INTERNATIONAL Vs. UNION OF INDIA & ORS.

JUDGEMENT

(1.) The petitioner, a Chennai based unit filed a shipping bill on 15.5.2003 to export the consignment declared as "ladies leather sandals" claiming drawback applicable to Sl. No. 64.06 of the relevant customs duty Drawback schedule. At the instance of Special Investigation Bureau of the Customs in New Delhi, the goods were considered "chappals" and not "sandals" as declared. To clarify and ensure proper description of the goods, the petitioner forwarded samples to the Council of Leather Exports, New Delhi by letter dated 19.5.2003. The Regional Director of the Council for Leather

(2.) The Superintendent SIIB Customs addressed the Council for Leather Exports on 16.7.03 seeking opinion for the categorization of the product. The Council for leather exports, forwarded the sample to Footwear Design and Development Institute. The institute by its letter dated 13th Oct. 2003 stated that the export goods fell under the category of "chappal" covered under Sl.No.64.10 of the drawback schedule. The letter of the Institute reads as follows:

(3.) Based on this opinion of Footwear Design and Development Institute, a Show Cause Notice was issued to the petitioner on 20.5.2005 asking it why an amount of Rs. 1,30,800.00 claimed, erroneously sanctioned and paid as differential duty drawback should not be recovered along with interest @15% p.m. and why the amount of Rs. 2,935.00 in draw back account no.187925 maintained at Punjab national Bank MCH should not be appropriated towards the drawback amount paid and recoverable from the petitioner. The notice also proposed penalty under Sec. 114 of the Customs Act.