DEPB benefit on packing material upheld where shipping declaration error did not prove intentional misdeclaration.

DEPB benefit on packing material was available where the contemporaneous record showed that the exporter's actual claim was confined to packing material used for export goods. A mistaken shipping declaration referring to the exported goods themselves did not, by itself, justify denial of the benefit when later correspondence clarified the intended claim. On that basis, intentional misdeclaration was not established, and the benefit was held admissible on the packing material.

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Issues: Whether the appellant was entitled to claim 1% DEPB benefit on the packing material used for export goods, and whether the declaration made in the shipping documents amounted to a disqualifying misdeclaration.

Analysis: The appellant had exported yeast under the Duty Exemption Passbook Scheme, and the contemporaneous correspondence showed that the claim ultimately pressed was only for DEPB benefit at 1% on the packing material, not on the yeast itself. The circular relied upon clarified that conversion and related benefits could be granted in appropriate cases. The finding that the appellant had sought DEPB on yeast was held to be incorrect because the later letter explained the mistake in the shipping declaration and specifically limited the claim to the packing material. On that footing, the alleged misdeclaration with intent to obtain excess credit was not established.

Conclusion: The appellant was entitled to DEPB benefit at 1% on the packing material, and the allegation of misdeclaration was rejected.

Ratio Decidendi: Where the contemporaneous record shows that the exporter's actual claim is confined to a benefit admissible on packing material, a mistaken shipping declaration mentioning the exported goods themselves does not, by itself, justify denial of the benefit or a finding of intentional misdeclaration.

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