Case Law Details
Surendran Vs Commissioner of Custom (CESTAT Bangalore)
The case of Surendran vs. Commissioner of Customs (CESTAT Bangalore) revolves around allegations of fraudulent exports and violations of customs regulations by M/s. Globe Fashions (Exim) India, facilitated by Shri D. Surendran (Appellant 1) of M/s. Trans Asia Shipping Services Pvt. Ltd., and Shri Ashok Shukla (Appellant 2) of M/s. Cargo and Travel Services Pvt. Ltd. This summary will outline the key aspects and findings of the case, focusing on the parties involved, the alleged violations, the arguments presented, and the final decision by CESTAT Bangalore.
Background and Allegations: M/s. Globe Fashions (Exim) India, an exporter, was suspected of engaging in fraudulent activities by misdeclaring goods for export. Specifically, they were accused of exporting inferior quality cloth pieces as ladies nightwear, thereby availing undue benefits under the Duty Entitlement Pass Book (DEPB) Scheme.
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Investigations and Findings: Customs officials initiated investigations after intercepting a consignment at ICD Hyderabad, which revealed that the goods were not as declared but rather irregularly shaped cloth pieces made from leftover rags. Similar suspicions arose regarding exports facilitated by M/s. Trans Asia Shipping Services Pvt. Ltd. (Appellant 1) through ICD Bangalore. It was found that containers were routed from Bangalore to Goa for stuffing before being returned to Bangalore for export via ICD Bangalore. This circuitous route and the misdeclaration of goods raised concerns over the validity of DEPB claims.
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