INTERNATIONAL CARGO AGENTS Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THESE two appeals are filed by M/s. Jaycee Exports and M/s. International Cargo Agents against Order -in -Original No. 07/2000/Commr/Adjn., dated 22 -2 -2000 passed by the Commissioner of Customs, Bangalore.

(2.) THE facts in brief are that M/s. Jaycee Exports, Mumbai filed two shipping bills No. 16048 and 16050 both dated 26 -7 -99 at Air Cargo Complex, Bangalore for export of non -metallic writing instruments under DEPB scheme by declaring FOB value of 56,73,889/ -. It appeared that the export consignment was overvalued to seek benefit under DEPB scheme. Therefore, it was detained for conducting market enquiries. The shipping bills were filed by M/s. International Cargo Agents on behalf of M/s. Jaycee Exports. During investigation, statements of various persons were recorded and a representative sample of the detained/seized goods were also sent for ascertaining present market value from M/s. Pointec Pens Pvt. Ltd., Bangalore. On investigation, it appeared that M/s. Jaycee Export had filed shipping bills No. 22184 -22185 both dated 11 -6 -99 at ICD, Bangalore for export of non -metallic writing instruments (ball pens) valued at Rs. 56,65,800/ - under DEPB scheme through M/s. International Cargo Agents, Customs Agents. On enquiry being initiated by Customs officers, ICD, Bangalore, regarding overvaluation of the consignment, these shipping bills were got cancelled by M/s. Jaycee Exports and the same consignment was then presented at Air Cargo Complex, Bangalore under shipping bill No. 16048 and 16050, dated 26 -7 -99 showing FOB value of Rs. 56,75,800/ - under DEPB scheme. In the shipping bill, they made declaration that advance payment has been received in respect of the said export consignment. Although on investigation it was found that M/s. Jaycee Export could not correlate the inward remittances to the export values shown in the shipping bills. They also could not furnish documents for having received an export order. The export value declared was not commensurate with the goods attempted to be exported and it was admitted by the exporter that there has been overvaluation to avail excess DEPB credit. However, the goods were allowed to be exported and show cause notice was issued to M/s. Jaycee Export proposing penal action under Section 114 of the Customs Act. Show cause notice was also issued to M/s. International Cargo Agents for penal action as they have presented the pens for export at Air Cargo Complex, Bangalore knowing fully well that the said consignment was overvalued and they had not made any entry in the register required to be maintained as per Customs House Agents Licensing Regulations, 1984 in respect of the shipping bills filed at ICD, Bangalore for the same consignment. They also failed to furnish the copies of shipping bills filed at ICD which were subsequently cancelled. They also signed the declaration for exporter and contravened provisions of Rule 14 and 19 of the Customs House Agents Licensing Regulations, 1984 read with the relevant provision of the Customs Act, 1962. The case was adjudicated by the Commissioner of Customs. He determined the value of the pens exported as Rs. 6/ - per piece in terms of Sec. 14 of the Customs Act. The value was determined for the purpose of benefit under DEPB scheme. He also imposed a penalty of Rs. 5 lakhs on M/s. Jaycee Exports, Mumbai under Section 114 of the Customs Act and a penalty of Rs. 50,000/ - on M/s. International Cargo Agents, Bangalore under Section 114 of the Customs Act for aiding or abetting M/s. Jaycee Exports in commission of offence.

(3.) ON behalf of M/s. Jaycee Exports, Shri B. Venugopal, Advocate and for M/s. International Cargo Agents, Shri B.V. Kumar, Advocate appeared for hearing. Smt Radha Arun, ld. SDR appeared for the Revenue.