TaxTMI 
TaxTMI 
TaxTMI 
2003 (9) TMI 378
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....y allowed to be exported and were not available for confiscation thus the appellants, as exporter, were liable for a penalty of Rs. 9 lakhs under Section 114(i) of the Customs Act, 1962. Hence this appeal. 2. The appellants submit - (a) They are engaged in the manufacture of Accelerated Grahic Processor (AGP card), falling under Heading 8.73 as parts and accessories of automatic data processing machines. The AGP card is fixed inside the computer for providing connection between computer and Monitor (visual display unit). This AGP card is nothing but populated printed circuit board i.e. printed circuit board on which components such as transistors, resistors are mounted. (b) ....
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....port basis alone was to be granted. The provisions regarding grant of DEPB credit on pre-export basis have been deleted during the periods in question. Perusal of the relevant policy paras reveal that when the exporter, exports the goods under cover of DEPB Shipping Bills. At the time of export, the Customs Department will examine the goods vis-a-vis the description given on the shipping bill to ensure that the goods described on the shipping bill alone are actually exported. The Customs Department would also verify the FOB value declared by the exporter with regard to Present Market Value (PMV), and hand over the Export Promotion Copy of Shipping Bill to the Exporter. (b) The exporter after ....
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....f the export products in the public notice issued by the DGFT and the rate claimed. It was further provided that correctness of this declaration should be verified by processing the shipping bill and also at the time of examination of the goods. 2. This matter has been re-examined. It has been decided that the role of customs authorities should be confined to verification of correctness of exporter's declaration regarding description, quantity and FOB value of the export product. It will be for the licensing authorities granting credit to ensure that credit is permitted by them at the correct rate as notified by the DGFT." (d) The CEGAT in the case of M.K. Fisheries v. Commissioner of C....
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....T authorities and not sit in judgments over the grant and or determine entitlement of DEPB which were not within the jurisdiction of the Customs to do so. The order of determination of the eligibility or otherwise of DEPB as made in this case cannot be upheld. (f) The DEPB Schedule describe PC Boards' without any qualification or restrictions. Relying on the case of Atari (India) Electronics - 1990 (45) E.L.T. 321 it could be held that both kinds of Circuit Boards i.e. plain or unpopulated or printed and populated could be covered as PC Boards. The Commissioner has come to a finding 'In fact the items imported was fully assembled item to be used as an add on card for computer' is a find....
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....was suppressed or kept away from the Customs Officers. Infact the declaration made on the Shipping Bill, as seen from Para 1 of the impugned order was 'Printed Circuit Board Double Sided (AGP Card TNT2/M84)'; which would indicate that the 'Card nature' with technical specification was indeed declared. The charge of misdeclaration therefore cannot be upheld. (g) The finding of the Commissioner that Rule 14 of the Foreign Trade (Regulation) Rules, 1993 especially sub-rule (2) thereof read with Section 3 of the Foreign Trade (Development and Regulation) Act, 1992 the goods should be deemed to render the export goods, prohibited goods and therefore liable for confiscation under Section 113(d) and....