Case Law Details
S.G. International Vs Commissioner of Customs (CESTAT Mumbai)
CESTAT Mumbai held that detention of export goods in excess of 3 days without bringing to notice of the Commissioner of Customs/ Chief Commissioner of Customs is unlawful and untenable in law.
Facts- The Appellants had exported goods of FOB value of Rs. 6,40,08,136.70/- claiming total drawback for Rs.11,71,805/-, refund of Integrated Goods and Service Tax (IGST) of Rs.42,32,438/- and Refund of State Levies (ROSL) of Rs.6,91,458/- being taxes/duties suffered on the export products. The goods covered by the shipping bills were duly assessed and cleared for export by Customs following the due procedure. The drawback, IGST refund and ROSL amounts as indicated above have been paid to the appellants after the “Let Export Order” grant and shipment of the goods for export.
On the basis of certain intelligence that the exporter had mis-declared the description of the goods and overvalued the exports to avail of an inadmissible higher amount of drawback, refund of IGST, ROSL, the Commissioner (General), JNCH, Nhava Sheva had directed the custodian CFS-JWR, Panvel to put on hold the goods exported by the appellants vide his letter dated 25.10.2018. However, it was reported by the Custodian that the goods have already been gated out from Container Freight Station (CFS) and were found to have been already shipped on board to Lagos by Maersk Line India Pvt. Ltd., in container No. MSKU0011063 on 30.10.2018. The shipping line was then directed by the Commissioner vide letter dated 7.11.2018, to recall back the container. As directed by the Commissioner the container was recalled back by the Shipping Lines on 29.03.2019.
The Additional Commissioner of Customs, JNCH, Nhava Sheva being the original authority had passed an Order-in-Original, wherein the assessable value was redetermined as Rs.2,34,42,440/- under Rule 6 of Customs Valuation (Determination of Value of Export Goods) Rules, 2007; impugned export goods were confiscated u/s. 113 (i), 113 (i)(a) of the Customs Act, 1962 with an option to redeem the goods on payment of redemption fine of Rs.20,00,000/-; imposition of penalty of Rs.40,00,000/- on the exporter u/s. 114(iii) ibid, and Rs.15,00,000/- on Shri Mohd. Siddique Muchhada, Power of Attorney holder u/s. 114AA ibid; besides the eligible drawback was reduced to Rs.5,25,786/- and other eligible refunds were restricted to lower amount than the one claimed by appellants such as IGST reduced to Rs.14,42,877/- from Rs.42,32,438/-, ROSL was reduced to Rs. 2,67,997/- from Rs.6,91,458/-, and MEIS benefits reduced to Rs.4,78,995/- from Rs.13,17,750/.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
