INDIAN HANDICRAFTS Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) IN this appeal, the appellants have challenged the order-in-original dated 16-10-1985 passed by the Additional Collector of Customs, Delhi Airport, Delhi imposing penalty of Rs. 50,000/- under Section 114 and Rs. 1000/- under Section 117 of the Customs Act.

(2.) The facts of the case are that the appellants are manufacturers and exporters of Readymade garments. That in part fulfillment of a contract with their buyers M/s. Canard of West Germany, the appellants had submitted a While Shipping Bill (S/B) which was registered by the Customs as No. 11001 of 8-3-1985. The description of the goods on the S/B was -

(3.) THE Customs official likewise took the statement of Shri Yaspal Singh and made further investigation. THEy carried on the raids on the houses of the partner of the appellant firm and on the houses of the Executive of the firm - in the office and factory and also carried search of the baggage of the persons of Managing Partner on his arrival from abroad. THE Customs officials did not discover any incriminating materials or documents. THEy discovered that appellants had imported 23.990 metres of Baby Cord textile against DEEC Book No. 106533 (Imports) issued by the Joint Chief Controller of Import & Export in terms of Government of India Notification dated 5-4-1982 (Appendix 19 of the Import & Export Policy Book) which the appellants were under obligation to export after manufacturing/conversion into garments against corresponding DEEC Book No. 10654 (Exports) issued by the same agency. THE Customs officials found that the appellants had exported 8700 pieces of Baby Cord garment and that they had already exported 4400 pieces baring a balance of 4300 pieces.