COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS Vs. SURESH JHUNJHUNWALA
LAWS(SC)-2006-10-33
SUPREME COURT OF INDIA
Decided on October 19,2006

COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, AP Appellant
VERSUS
SURESH JHUNJHUNWALA Respondents







JUDGEMENT

S. B. Sinha, J. - (1.)M/s Ganesh Yarntex Export Private Limited filed six shipping bills under the Duty Entitlement Pass Book Scheme (DEPB Scheme) bearing Nos. 136 to 141 dated 06.01.2001. M/s Aadee Exports and Imports, Secunderabad filed five shipping bills bearing Nos. 142 to 147 dated 06.01.2001. They declared their address as c/o ABC, II Floor, YMCA Complex, Sardar Patel Road, Secunderabad. All the said shipping bills were filed for post export benefit under the DEPB Scheme claiming credit rate @ 15% vide Sl. No.20(iii) of the DEPB Credit List, Product Group No.89 read with EXIM Policy. The goods were declared as "Dyed Printed Night Wears (Maxis)" in various sizes/colours. The value of the goods was claimed to be Rs.41 lakhs @ US$ 6.40 per piece. The total FOB value of the consignment was declared to be US$ 5,84,064/- (Rs.2.72 crores) approximately. The consignment was made in the name of M/s Reemj Al Maha Trading Est., Dubai, UAE.
(2.)It was allegedly found that cheap garments were being exported by grossly mis-declaring the description and heavily over-invoicing the value under the said Scheme by the aforementioned two firms. The goods were intercepted at Chennai. Upon examination, it was found that all the goods were ladies nightwear shaped garments and were found to be small, uneven and unshaped which could not be worn by any person of any age including children. The goods were purchased from Bombay and sent to Hyderabad to be loaded in a vessel at Chennai for export to Dubai. They were seized.
(3.)A show cause notice was issued on 18.07.2001 directing respondents to show as to why :
"i) the goods sought to be exported in the name of M/s Ganesh Yarntex Exports (P) Ltd. and M/s Aadee Exports (P) Limited and M/s Aadee Exports and Imports vide shipping bill Nos. 136 to 146 all dated 6.1.2001 through ICD Hyderabad with a declared FOB value of Rs.2.72 crores should not be denied to be exported under DEPB Scheme and the DEPB credit totally amounting to Rs.41,06,700/- should not be denied; ii) The declared value of US$ 6.40 per piece in the above said shipping bills should not be rejected;

iii) The goods covered under the said Shipping Bills seized at Chennai port on 24.1.2001 should not be confiscated under sections 113(d, 113(h) and 113(i) of the Customs Act, 1962;

iv) The goods seized vide panchnama dt. 24.2.2001 at Plot No. 18, Paigah Colony, S.P. Road, Secunderabad should not be confiscated under Section 113(d) of the Customs Act ibid; and

v) A penalty should not be imposed on each of them under section 114(i) of the Customs Act, 1962."



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