Case Law Details
Sri Vijayalakshmi Leathers Vs Commissioner of Customs (Exports) (CESTAT Chennai)
In the case of Sri Vijayalakshmi Leathers vs. Commissioner of Customs (Exports) heard by the CESTAT Chennai, the appellant had filed a shipping bill in 2013 for the export of leather declared as “F/C Sheep Grain Finished Upper Leather.” However, upon examination, it was discovered that the goods did not meet the quality standards of finished leather. The Central Leather Research Institute (CLRI) report highlighted the absence of finishing coat and wax/oil coat, which are essential for categorizing leather as finished. Consequently, the original authority ordered confiscation of the consignment and imposed penalties under Section 114(ii) of the Customs Act, 1962.
Upon appeal, the Commissioner (Appeals) remanded the case for reconsideration of the penalty, leading to the appellant’s appeal before the CESTAT Chennai.
During proceedings, the appellant’s counsel argued that there was no intent to export improper goods. The appellant had cooperated with the authorities and took back the goods upon receiving the CLRI report to complete the necessary processing before re-exporting. The appellant contended that the absence of finishing coat and wax/oil coat, as highlighted by CLRI, did not imply an attempt to export semi-finished leather as finished. The appellant had undertaken all other processes satisfactorily, as verified by CLRI.
The department, represented by its advocate, reiterated the findings of the impugned order.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
