(1.) THESE appeals have been filed against order -in -original No. 22/Commr./2003 dated 26.11.2003 passed by the Commissioner of Customs, Ahmedabad. The brief facts of the case are as follows:
(2.) THE appellants filed two shipping bills both dated 20.9.1999 under the drawback scheme on behalf of M/s. Oversky Associates, Gurgaon, Haryana to export 24,750 pcs. of viscose/cotton power loom ladies blouses (declared value at Rs. 22,82,281/ - FOB) and 11500 pcs. of similar goods (declared value at Rs. 11,46,608/ - FOB) respectively. Examination of the consignment was carried out and it was found that the goods were old and used garments of foreign origin. A detailed investigation was carried out. The investigations of the departmental authorities revealed the following facts:
(3.) IN view of the above, show cause notices were issued to M/s. Shivam Overseas, New Delhi, the Custom House Agent M/s. Unique Shipping Services Pvt. Ltd., Gandhidham, Mr. H.S. Grewal, Mr. Laxmichand, Mr. Devendra Kumar, Mr. Narayanan Nair Ajay Kumar and Mr. K.V. Gopalkrishnan proposing for confiscation of the seized goods covered by two shipping bills under Section 113(d)(h) of the Customs Act. Penalties under Section 114 of the Customs Act were also proposed. After conducting the adjudication proceedings, the Commissioner passed the impugned order. He held that the impugned goods which were attempted to be exported under the drawback scheme were liable for confiscation under Section 113(d) of the Customs Act, 1962. He absolutely confiscated the goods. Further, he has imposed a penalty of Rs. 10,88,000/ - on M/s. Shivam Overseas, New Delhi and penalty of Rs. 10,00,000/ - on Mr. H.S. Grewal under Section 114 of the Customs Act. Further, he has imposed a penalty of Rs. 5,00,000/ - on Shri Ajay Kumar, Director of M/s. Unique Shipping Services Pvt. Ltd., Gandhidham. The appellants have strongly challenged the impugned order. The following defects were recorded on hearing :