TaxTMI 
TaxTMI 
2022 (7) TMI 104
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....9, 03.12.2019, 21.08.2019, 06.09.2019, 05.12.2019 and 27.01.2020 were issued alleging, inter alia, that there was switching of the samples sent / taken to the Central Leather Research Institute (CLRI) for getting favourable certification for the goods as 'Finished Leather' and thereby facilitating fraudulent export of 'Semi-finished Leather', to evade payment of export duty and to avail duty drawback, apart from other incentives. 2. A perusal of the Show Cause Notices reveal, inter alia, that a team of officers from the Special Intelligence and Investigation Branch (SIIB), Custom House, Chennai carried out a surprise check at the Container Freight Station (CFS), Virugambakkam, on 07.10.2016 where some of the consignments of finished leathe....
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.... Commissioner of Customs, Chennai passed Orders-in-Original, as under:- Sl. No. Order-in-Original No. Date of order Appeal No. before CESTAT 1. No. 75915/2020 17.08.2020 C/40620/2021 2. No. 76012/2020 04.09.2020 C/40621/2021 3. No. 76334/2020 30.09.2020 C/40618/2021 4. No. 76360/2020 30.09.2020 C/40617/2021 5. No. 76362/2020 30.09.2020 C/40114/2022 6. No. 76704/2020 28.10.2020 C/40113/2022 7. No. 76784/2020 29.10.2020 C/40619/2021 wherein, confiscation order was passed as proposed in the Show Cause Notices, however, giving an option of redemption on payment of fine under Section 125 ibid. The Adjudicating Authority also confirmed the duty demand at 60% as per the Export Tariff for unf....
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.... 092, that there is no mention about drawing of the samples at all anywhere in the said Mahazar; that the Mahazar just mentions about the examination of the consignments lying at Godown No. 03. 6.2 He would also submit, referring to another Mahazar dated 07.11.2016 drawn in the presence of witnesses at Room No. K 306, SIIB Section, Narmada Block, 3rd Floor, Office of the Commissioner of Customs, III Commissionerate, No. 60, Rajaji Salai, Custom House, Chennai, that the Revenue has nowhere mentioned as to what was the subject matter of examination by the CLRI and from where the samples were drawn and that if at all there was a valid drawing of the sample leather from the impugned consignments, how and where the same was preserved from the f....
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....red the rival contentions, perused the documents placed on record as also the orders of the lower authorities. After hearing both sides, I find that since a common issue is involved and the relief sought is also common, these cases could be clubbed together for convenience and common disposal. 9. The first test report dated 07.10.2016 issued by the CLRI clearly mentions that the sample of leather 'satisfies' the norms and conditions laid down in the Public Notice ibid. for the type of finished leather as declared ("Sheep Leather with Finishing Coat, Colour: WHITE (0162), Category: I"). The second report dated 09.11.2016 certifies that the sample does not satisfy the norms and conditions laid down in the Public Notice for the type of finish....
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....g of samples and, in any case, the Revenue has not explained anywhere as to the source of the sample which was sent to the CLRI for testing/report. The above is sufficient to dislodge the veracity of the second report which goes to the very root of the report of the CLRI dated 09.11.2016. 13. By this, I am of the view that the Revenue has not satisfactorily and effectively shook the first report of the CLRI dated 07.10.2016 and hence, it has to be held that the norms and conditions laid down under the Public Notice No. 21/2009-14 dated 01.12.2009 are satisfied, as opined by the expert. Hence, the demand of confiscation apart from demand of duty liability and the various penalties levied on the appellants cannot sustain, since the very basi....