GEE GEE INTERNATIONAL Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THE above appeals arise out of the order passed by the Commissioner of Customs, New Delhi confiscating goods covered by Shipping Bill Nos. 9654 and 9655 under the provisions of Section 113(i) of the Customs Act, 1962 with an option to redeem the same for home consumption on payment of a fine of Rs. 8 lakhs and Rs. 4 lakhs respectively and imposing a penalty of Rs. 5 lakhs on appellant No. 1 and a penalty of Rs. 2.5 lakhs on appellant No. 2 under Section 114(iii) of the Customs Act, 1962.

(2.) WE have heard Shri A.S. Sunder Rajan, learned Counsel who mainly contends that even though the claim for drawback may not be admissible to the appellants, still the goods should be permitted to be re -exported as they were found to be in accordance with the contract entered into between the appellants herein and their buyers in Moscow and the penalties should be set aside. Subsequently, the learned Counsel clarifies under instructions, that the goods are not fit for export as they have deteriorated due to their lying in the docks for a long period.

(3.) WE have heard Shri S.N. Ohja, learned DR and perused the records. We find from the narration in the impugned order that both the appellants filed shipping bills on 26 -12 -1995 and claimed drawback at the rate of 12.5% on FOB value under Sl. No. 6204 covering silk readymades of the Drawback Schedule. The particulars of the goods, value etc. declared on the shipping bills were as under : -