2018 (12) TMI 880

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....in the local market or exported as the case may be. The Directorate of Revenue Intelligence (DRI), Kolkata Zonal Unit initiated an investigation that the appellant company availed export incentive/Duty Entitlement Pass Book Scheme and Draw Back, during the period 2008-09 to 2011-2012, mis-declared the same as of Indian Origin in the export documents, considering the exported FeSi were actually of third country origin. A Show Cause Notice dated 06.12.2013 was issued proposing demand of duty equivalent to incentive availed by the appellant company alongwith interest and penalty and also to impose penalty under Section 114(iii) and Section 114 AA of the Customs Act, 1962 on Shri Chetan Aggarwala, Director of the appellant company and the appel....

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.... and no occasion arose for the Customs to recover any duties. It is also submitted that out of total 133 shipping bills, as many as 114 shipping bills were assessed by the Customs Officers covering the period upto 08.04.2011 i.e. prior to the introduction of self-assessment scheme. After 08.04.2011, the assessment in respect of 3 export consignments out of 19 were done by the appellants. The purported show cause notice was issued on 06.12.2013 and the addendum was issued on 26.03.2014, which is barred by limitation. He also submitted that the department had not challenged the assessment order and relied upon various case laws. The main contention of the ld.Counsel is that once DGFT had already imposed penalties on the appellants, then the c....

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....ndergone processing of the said goods which includes sizing, screening, testing, bagging, labeling etc. as per the order and requirement of their customers. Such processing is permissible, without any stipulation of value addition, in terms of Public Notice No.102(Re-2008)/2004-09 dated 05.11.2008 issued by the DGFT to allow export under export incentive scheme, because such processing is sufficient for conversion of foreign origin character of goods. The said processing, however, not disputed by the Customs authority and they held that it was not sufficient due to insignificant/meager value addition involved therein and in support referred to Article 78 of the official journal of European Union. As, the provision of foreign journal cannot ....

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....se notice was issued by DGFT in petitioner's favour. In the present case, the show cause notice issued by the DGFT authorities is after the show cause notice issued by the customs authorities. Further, the DGFT authorities had imposed penalties on the appellants. 8. Ld. Counsel for the appellant had also pointed out that the proceeding was in-fructuous and without authority of law. Proper authority to take action in the case of any irregularity noticed in DEPB availment is DGFT and not the Customs. Further, unless DEPB/FMS are cancelled which were issued to the appellant on completion of exports any action by Customs would be illegal and improper as credits earned were not disallowed. It was contained in the demand notice that DRI had du....