2018 (3) TMI 1678

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.... under section 114 of Customs Act imposed vide order-in2 original no. KOL/CUS/AIRPORT/ADMN/10/2011 dated 3rd November 2011, no. KOL/CUS/AIRPORT/ ADMN/07/2012 and no. KOL/CUS/AIRPORT/ADMN/26/2012 dated 10th April 2012 of Commissioner of Customs, (Airport & Administration), Kolkata. These impugned orders have found the appellants to be culpable in suppressing material particular pertaining to the goods in the export of 'ladies midis' with intent to avail unearned entitlement to import 'fabrics' and thus defraud the exchequer. Besides visiting penalties of Rs. 3,00,00,000, Rs. 8,00,00,000 and Rs. 6,00,00,000, the privileges of import under the DFIA scheme of the Foreign Trade Policy was also deprived. 2. Relying upon the permitted import of....

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....rsing the value and the description of the goods has not been countermanded before arriving at the conclusions in the impugned order. Furthermore, it is his contention that the DFIA issued by the licensing authority after due verification has not been cancelled and that the regularity of the issue of the said DFIA cannot be questioned in proceedings under Customs Act, 1962. It is also contended that the norms committee had, only on 24 May 2007, decided that the restriction on wastage should determine the eligibility for DFIA and that the order of the adjudicating authority has rendered a retrospective application that was not contemplated by the competent authority. 4. According to Special Counsel for Revenue, the adjudicating authority ....

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.... prescriptions in section 50 of Customs Act, 1962 for the purpose of determining confiscability of the export goods must necessarily be related to the entries prescribed for the purposes of assessment and grant of 'let export order.' The various requirements of declaration under the DFIA scheme, separately for pre-import and post-export, are for compliance with the scheme and cannot be a prescription under Customs Act, 1962 unless specified particularly. The invoking of section 113 (d) would therefore, not appear to be a valid application of the law. 7. Section 113(i) of Customs Act, 1962 is invokable for nonconformity of goods with any material particular declared in the shipping bill. The adjudicating authority relied upon the vast dif....