CHANGZHOU YONGFA CORDUROY CO. LTD. Vs. COMMISSIONER OF CUSTOM, BANGALORE

JUDGEMENT

(1.) The appellant has filed the reframed substantial question of law.

(2.) Sri C. Shashikantha, learned Central Government Counsel has filed power for respondent. Therefore, office is directed to show his name as counsel appearing for the respondent.

(3.) This appeal is preferred by the Exporter challenging the order passed by the Tribunal rejecting his request for re-exporting the goods, which is rejected by the importer. M/s. Vimalachal Fashions, Bangalore filed four bills of entry all dated 3-8-2007 seeking clearance of 53927 sq. mtrs. of "Textile pieces of goods or Dyed cotton processed fabrics" classified under Chapter sub-heading 5208 32 90 of Customs Tariff claiming benefit of duty free import under Duty free replenishment (DFRC) Scheme. On examination of the consignments, it transpired that the description of the goods was misdeclared and that the goods under import were 'cotton corduroy fabrics'. DFRC benefit was available to "Textile pieces of goods or Dyed cotton processed fabrics". However, investigation revealed that the importer did not actually function from the premises declared in the bills of entry and the address was given in order to obtain IE code from DGFT. During the course of investigation, the appellant-exporter sent a communication addressed to the Commissioner of Customs intimating that their staff had discharged a wrong consignment and sought permission to re-export all the goods. In the alternative, it was proposed to sell the goods under import under the four bills of entry to the importer at a discount. This message was received by the Commissioner of Customs on 6-8-2007. The Commissioner refused the permission sought by the appellant-exporter. Aggrieved by the same, the appellant preferred an appeal in the Tribunal. In the mean-while, the Commissioner has found that the Importer had misdeclared the description of the goods under declared quantity imported and contravened prohibitions of import. Therefore he confiscated the goods covered by four bills of entry dated 3-8-2007 and six other earlier bills of entry under Sections 111(d), 111(1) and 111(m) under the Customs Act, 1962. Therefore the Commissioner confirmed a demand of Rs. 2,19,47,657/- along with applicable interest on the demand value of the consignments under import, as well as past consignments and imposed a fine and penalty on the import. The Exporter was warned. The importer also preferred an appeal against the said order before the Tribunal.