SHRI SATISH GUPTA, DIRECTOR AND Vs. CC

JUDGEMENT

(1.) THESE appeal filed against common impugned order passed by the Commissioner of Customs.

(2.) THE brief facts of the case are that M/s R.S. and Co., M/s Stich and Style, M/s Himgiri Overseas and M/s Deepshikha Overseas filed 100 shipping bills for export of readymade garments. The export of readymade garment entitles the exporters to claim drawback at the rate prescribed under the schedule. Out of the 36 containers in respect of the 100 shipping bills filed by the above exporting firms, 12 containers were detained at Mumbai port and another 10 containers were detained at Nhava Sheva Port before their placement on board on vessels bound for Dubai. 4 containers which were already sailed from Mumbai Port to Dubai were called back through the steamer agent. The contents of these containers were re -examined by the Custom officers, and it was found that the description of the goods was not as per the declaration filed in the shipping bills. The shipping bills, the description of the goods were readymade garments whereas in fact the goods were old and used garments, The goods were seized and it was also found that the goods were overvalued to claim the higher rate of drawback. On investigation, it was also found that all the exporting from floated by Shri Rajesh Kumar @ Sh. Rajesh Kumar Kashap @ Rajesh Bhasin. Show -cause notice was issued for confiscation of the seized goods and for disallowing the drawback already sanctioned to the exporter and the demand for drawback, was also made. In the show -cause notice, the proposal for imposition of penalty were also made. Thereafter the adjudicating authority confiscated the garments valued at Rs. 31,39,72,6556.77 value declared by the exporter under Section 113 of the Customs Act and allowed the same on payment of redemption fine of Rs. 66 lakhs. The adjudicating authority also ordered that no drawback shall be allowed in respect of these goods and the demand is confirmed in respect of drawback already obtained by the exporter. Personal penalty was imposed on Shri Rajesh Kumar along with present appellants.

(3.) THE present appellants are not challenging the order of confiscation or disallowing the drawback or demand of drawback. The appellants are only challenging the imposition of penalties under Section 114(iii) of Customs Act.