MUNIA CREATION Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the Order -in -Appeal No. CAL. 246/2002 dated 23.7.2002 passed by the Commissioner of Customs (Appeals) Kolkata by which the Commissioner has rejected the appeal filed by the appellants herein.

(2.) AFTER hearing the parties, the operative portion of the order allowing the appeal was pronounced in the open Court on 28.3.2003.

(3.) THE brief facts of the case are that the appellants sought to export 12,882 pieces of leather goods (wallets, purses bags etc.) under DEPB Shipping Bill No. 9111440 dated 21.8.2001 valued at Rs. 19,81,508.61 (CIF) and FOB value at Rs. 17,67,732.60. The appellants claimed DEPB credit for the subject goods for Rs. 1,59,095.93 under DEPB product code 64 (23) of DEPB Schedule. On examination of the goods it was found that out of 12,882 pieces, 1986 pieces were having outer visible surface of PVC material and not leather. The value of such goods was Rs. 2,28,328.70 FOB and the DEPB credit involved in respect of the said goods was Rs. 20,550. The original authority rejected the contention of the appellants during the personal hearing that the goods were predominantly made of leather and he held that the samples of goods do not conform to the standard of outer visible surface area of leather and he ordered for confiscation of the goods with option to redeem the same on payment of fine of Rs. 20,000 and a penalty of Rs. 5000. On appeal the Commissioner (Appeals) rejected the appeal and hence this appeal.