SKIN TOUCH INTERNATIONAL AND SHRI Vs. CC

JUDGEMENT

(1.) These two appeals are directed against a common Order (Order -in -Original No. ACU/VS/4/2002 dated 4.3.2002) passed by the Commissioner of Customs, Air Cargo, New Customs House New Delhi. They were heard together and are being disposed of by this common order.

(2.) The first appellant, M/s. Skin Touch International (proprietor Shri Havendra Singh) is the exporter and the second appellant, M/s R.K. International (proprietor Shri Padam Gupta) is the Clearing Agent. Under the impugned orders, the Commissioner, Customs has denied DEPB benefit of about Rs. 7 lakhs to the exporter and imposed a penalty of Rs. 5 lakhs on him. Similarly a penalty of Rs. 1 lakh has been imposed on Shri Padam Gupta.

(3.) Facts may be stated briefly. M/s Skin Touch International exported 56,600 Non -Pyrogenic Sterile Infusion Sets to M/s Fram Vex, Yeravan, Armenia via, UAE between July to October, 1999. In the four shipping bills covering the export, value declared was US .75 (Rs. 32.40 per set). The export was made under DEPB scheme i.e. claimed @ 20% of the export value for payment of customs duty on imported goods. This claim was allowed by the Customs Authorities. Subsequently, the appellant tendered another consignment of 45,000 pieces of Infusion Sets in December 1999 to the Customs for export to the same party abroad. Again, the export value was i.e. @ .75 US per piece. The Customs Authorities held up the consignment for verification of value, particularly, in view of the fact that DEPB benefit has a sealing that it should not exceed 50% of the market (Indian) value of the goods. Market verification carried out showed that the market value of the goods was in the range of Rs. 4 per set. Therefore, the Customs Authorities refused to pass the DEPB export shipping bills. They also objected to the DEPB benefit already availed of in respect of the earlier exports. Thereupon, the exporter returned to the Cusoms the DEPB benefit already availed of. He also sought export of the goods under non -DEPB shipping bills i.e. after giving up the claim for DEPB benefit. The Customs authorities allowed the export. Subsequently, Show -cause Notice 12.7.2000 was issued to them. The proceedings so initiated, culminated in the passing of the impugned order wherein the Commissioner has passed the following order: