Case Law Details
Angallamman Knit Fabrics Vs Commissioner of Customs (CESTAT Chennai)
The appellant has produced various challlans as proof of supply of yarn by Rithvikk Garments to Sri Angallamman Knit Fabrics. So also there are several invoices produced to show that M/s.Sri Angallamman Knit Fabrics was job work-manufacturer and was using the imported goods for manufacture of knitted fabrics which was later made into knitted garments by Rithvikk Garments. From the conditions of the EPCG licence, it is also seen that licence holder may discharge the export obligation by way of direct exports as well as through third party exports. In the event of third party exports, name of the third party exporter, name of the EPCG licence holder, licence number and date should be noted on the shipping bill. Thus, it cannot be said that merely by exporting the goods through third party exporter/Rithvikk Garments, the licence holder (Sri Angallamman Knit Fabrics) has violated the conditions of the EPCG licence. Over and above all these facts, it has to be noted that since there is enough time for completion of export obligation and also for submitting necessary documents before the DGFT, the show cause notices issued by the department alleging various violations, in my view, cannot sustain. Though department alleges that Rithwikk Garments has fabricated the documents and has committed offence under Section 114AA, the department has not been able to establish these allegations. The value of the goods declared by M/s.Rithvikk Garments in the shipping bill has been held to be overvalued merely on the basis of job work invoice raised by M/s. Angallamman Knit Fabrics. There is no evidence to show that appellant M/s.Rithwikk Garments had intentionally made any false endorsements on the shipping bill. Had there been any dishonest intention, the appellants would not have produced such invoice showing lesser amount before the Customs officers. From the statements of both the appellants, it is clear that it is the first time they have endorsed shipping bills with this EPCG licence.
For these reasons, I hold that confiscation of the export goods cannot sustain and it is hereby set aside.
FULL TEXT OF THE CESTAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Chennai jdfft office is not accepting free shipping bill for epcg licence
We have fulfilled average EO
Whether free shipping bill used for export can be used for Redeeming Epcg licence your views