MESSRS ANITA EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) Short question which cannot wait indefinitely arises in this group of petitions. Though facts are slightly different in each case, the central question is as to which authority would be competent to entertain and dispose of the refund claims of units situated within the Special Economic Zones which claims arise out of over payments of customs duty, redemption fine or penalties under the Customs Act, 1962.

(2.) As a test case, we may record the facts arising in Special Civil Application No.11876/2014. M/s. Anita Exports is a partnership firm, petitioner no.1 is a SEZ unit located in Kandla SEZ. The unit imported certain raw materials at Kandla. The goods were declared as used garments. The Commissioner of Customs, Kandla, however, disputed the valuation as well as the declaration of the goods made by the petitioners. He was prima facie of the opinion that the valuation of the imported goods declared by the petitioners was undervalued and further that the consignment did not contain used and old garments. A show cause notice dated 1.3.2012 therefore, came to be issued by the Commissioner(Customs) on the premise that value of goods was not Rs.70,64,917/as declared but actually was Rs.3,18,42,650/and further that the imported consignment was not of worn clothes but clothes and other mixed goods. On such basis, he called upon the petitioners to show cause why :

(3.) After considering the reply by the petitioners, the Commissioner of Customs passed his orderinoriginal dated 17.10.2012. In such order he confirmed that there was misdeclaration of the valuation of goods. The correct value was redetermined at Rs.3,18,42,650/. He also held that the imported consignment was clothes and other mixed goods which were misdeclared as old and used clothes. On such basis, he ordered confiscation of goods, but offered redemption of fine of Rs.30 lakhs. He imposed a penalty of Rs.10 lakhs on the firm under section 112(a) of the Customs Act, 1962. He also imposed a personal penalty of Rs.2,50,000/under the said provision. The operative portion of this order reads as under :