ASHU EXPORTS Vs. CC

JUDGEMENT

(1.) In this appeal, the challenge is against confiscation of the goods covered by three Shipping Bills, as well as against the penalty imposed on the appellants as per the order of the Commissioner of Customs.

(2.) The appellants had filed three Shipping Bills, all dated 27.6.2003, for export of dyed fabrics, declaring the value thereof as Rs. 97,75,500/ -(FOB) and claiming proportionate benefit under the DEPB Scheme. The departmental officers swiftly conducted examination of the goods and found heavy overvaluation. It appeared to the officers that the goods were not worth above Rs. 6,58,368/ - and had been overvalued with the oblique motive of obtaining higher DEPB benefit. The authorities proposed to confiscate the goods and to penalise the exporter. The party waived show -cause -notice and requested for summary adjudication of the case. Accordingly, the Commissioner of Customs passed on order after hearing the party. It is that order which is presently under challenge. The Commissioner, in the impugned order, confiscated the goods under Section 113(ii) of the Customs Act with option for redemption thereof on payment of fine of Rs. 3 lakhs. He also imposed a penalty of Rs. 10 lakhs on the party under Section 114 of the Act.

(3.) Heard both sides. Ld. Counsel for the appellants submits that the goods were not liable to be confiscated under Clause (ii) of Section 113 of the Customs Act inasmuch as they were not goods entered for exportation under any claim for drawback and had nothing to do with Section 75 of the Customs Act. It is further submitted that the goods were not prohibited goods. Even the impugned order does not hold the goods to be so. It is argued that any goods, not being prohibited for exportation, would not attract the penal provisions of Section 113. In this connection, ld. Counsel has relied on the following case law: