CC Vs. R.C. FABRICS (P) LTD.

JUDGEMENT

(1.) THE Revenue is aggrieved by the order of the Collector of Customs, Delhi who has dropped the proceedings emanating from show cause notice dated 18.1.1991 proposing confiscation of seized goods i.e. 31061 mtrs. of 100% polyester fabrics for contravention of the provisions of Import Licencing and proposing imposition of penalty on the ground that an earlier adjudication order dated 15.1.1991 in respect of the same consignment had already been passed and, therefore, another adjudication order in respect of the same consignment was not permissible in law.

(2.) THE brief facts are that the respondents herein filed a Bill of Entry No. 151684 dated 16.8.1990 for clearance of goods declared as 100% polyester fabrics (denier 150 to 300) 150 cms. without payment of duty, against an advance Licence dated 31.1.1990 -(DEEC Book No. 008053 dated 31.1.1990). Examination of the goods on 3.9.1990 revealed an excess of 843.35 mtrs. in the consignment over and above the quantity declared in the Bill of Entry. The Assistant Collector passed an order on the note sheet on 22.9.1990 directing the importers to pay redemption fine of Rs. 25,000/ - and personal penalty of Rs. 5,000/ - as well as duty leviable on excess goods, and the formal Order -in -Original was passed on 15.1.1991. Based on the information that the exports effected by the respondents under the DEEC Book in question were fraudulent, the consignment was detained in September 1990, samples were drawn for test in November 1990 and the chemical analysis report dated 4.12.1990 of the samples indicated that the denierage of the fabrics was 327 on the warp side and 310.2 on the weft side, while the advance Licence permitted import of polyester fabrics of denier 150 to 300. It, therefore, appeared that the entire consignment was liable for confiscation for misdeclaration of the denierage with intent to evade payment of duty and that the duty amount of Rs. 16,01,279/ - was leviable on the goods since they were not covered by the DEEC Book and the advance Licence and that the Directors of the firm were liable to penalty. During the pendency of the investigations, the importers filed CWP No. 3537/90 in the Delhi High Court and as per the Court orders, a show cause notice was issued on 18.2.1991. The Additional Collector of Customs vide adjudication order dated 25.2.1991 imposed redemption fine of Rs. 4 lakhs and a personal penalty on the Directors of the firm. This order was challenged by the importers and was set aside by the High Court which directed the Additional Collector to decide the matter afresh after dealing with all the submissions of the importers, including the issue of jurisdiction viz. as to whether a fresh show cause notice could be issued in view of the existence of an order dated 15.1.1991 passed by the Assistant Collector of Customs. The case was adjudicated vide the impugned order which is dated 22.10.1993 wherein the Collector dropped the proceedings, giving rise to the present appeal.

(3.) WE have heard Shri N.K. Bajpai, learned Counsel on behalf of the Revenue and Shri Vivek Sood, learned Counsel for the respondents.