SADGURU EXPORTS Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THESE appeals have been filed against the OIO No. 33/2004 dated 13 -10 -2004 passed by the Commissioner of Customs, Cochin.

(2.) THE appellants filed 4 Shipping Bills under claim for Drawback in Cochin Customs for export of Taffeta Silk Fabrics. It is stated that the goods were stuffed at the exporters premises at Manuru, Udupi under the supervision of the jurisdictional officers of Central Excise. The containers for stuffing actually were sent from Cochin port. At the time of stuffing the containers, three sets of samples were drawn for examination. Two sets of samples were duly sealed and handed over to the exporter for submitting them to Customs at the port of export. The third sample was retained by the Central Excise officers at Udupi. After stuffing, the containers were sealed by the Central Excise officers and sent to Cochin Port for further export. The CHA in Cochin submitted the shipping bills for assessment along with copies of purchase orders and related documents. The Deputy Commissioner at the Dock in Cochin ordered for re -examination and drawing of samples. The samples were drawn in the presence of CHA. After drawing the samples, the DC issued Let export order. The test report of the sample drawn at Cochin revealed that the goods were not Taffeta silk as declared. Proceedings were initiated against the appellants by issue of a Show Cause Notice dated 10 -12 -2003. The Adjudicating Authority held that the impugned goods are liable for confiscation under Section 113(i) and 113(ii) of the Customs Act. The drawback claim amounting to Rs. 16,08,750/ - was rejected. However, the Commissioner has held that they are eligible for drawback at admissible rates for export of fabrics of Polyester filament yarn as the test report revealed that the impugned goods were made of polyester filament yarn. He imposed the following penalties under Section 114(iii) of the Customs Act.

(3.) SHRI S. Raghu, the learned Advocate, appeared on behalf of the appellants and Shri Anil Kumar, the learned JDR, for the Revenue. The learned Advocate urged the following points : -