TaxTMI 
TaxTMI 
2008 (8) TMI 116
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....benefit along with interest; suspension of licence for a period of six months; and imposing penalty equivalent to 50% of the Free On Board (for short "FOB") value of export. 2. The facts leading to the said order are that the petitioner exported goods through Dry Port, Ludhiana. The said goods were exported under Duty Entitlement Pass Book Scheme. The said Scheme is used for importing goods without payment of custom duty. The objective of the Scheme is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. 3. The Scheme was part of Export and Import Policy for the period 1st April, 1997 to 31st March 2002 as co....
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....cifically covered under Serial No. 289 of DEPB Rate List which provides for 14% duty credit as against 22% obtained by the petitioner by describing goods exempted as Timing Shaft. The Adjudicating Authority not only cancelled DEPBs but also passed an order to recover the amount of Rs. 34,29,998/- equivalent to total DEPB credit of four scrips. 5. Against the said order, an appeal was filed. The Additional Director General of Foreign Trade found vide order dated 4-5-2006 that there is no dispute about the exports which have duly been certified by the Customs and against these exports foreign exchange has also been realized, which makes the exporter entitled for EXIM benefits. Therefore, the order passed by the Adjudicating Authority was set....
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....risdiction could be exercised only in respect of an order passed by the Adjudicating Authority. It is further contended that, in any case, no order imposing penalty could be passed against the petitioner by the Revisional Authority when appeal against the order dated 14-6-2002 imposing penalty is pending. Thus, it is contended that the order passed by the Revisional Authority is wholly unjustified, illegal and, therefore, liable to be set aside. 9. Before we proceed further, certain provisions of the Act are required to be reproduced:- "The Foreign Trade (Development and Regulation) Act, 1992 "9. Issue, suspension and cancellation of licence:- (1) to (3) xx &....
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....sp; xx (5) Where any contravention of any provision of this Act or any rules or orders made thereunder or the export and import policy has been, is being, or is attempted to be, made, the goods together with any package, covering or receptacle and any conveyance shall, subject to such requirements and conditions as may be prescribed, be liable to confiscation by the Adjudicating Authority. (6) The goods or the conveyance confiscated under sub-section (5) may be released by the Adjudicating Authority, in such manner and subject to such conditions as may be prescribed, on payment by the person concerned of the redemption charges equivalent ....
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..... 10. Under Section 16 of the Act, Director General of Foreign Trade has been empowered to call for and examine the records of any proceedings in the case of any decision or order made by any officer subordinate to him, may on its or his own motion or otherwise. Such jurisdiction is in respect of any proceedings in which a decision or an order imposing a penalty or redemption charges or adjudicating confiscation has been made. In the present case, the initial order passed by the Adjudicating Authority was to the effect that the petitioner had obtained DEPBs on the basis of forged shipping bills to which the petitioner was not entitled to, therefore, such DEPBs were cancelled, in appeal, learned Appellate Authority has passed an order of re....
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..... The other argument that the Director General of Foreign Trade could not revise the order passed in appeal is again not tenable. Undisputedly, Additional Director General of Foreign Trade, who has passed the order-in-appeal, is subordinate to the Director General. The revisional jurisdiction has been exercised after the decision of the appeal. The bar under Section 16 of the, Act to exercise the revisional jurisdiction is only "when no appeal has been preferred". It does not include the appeal which has been decided. The language of the section is indicative of the fact that revisional jurisdiction cannot be exercised when the appeal is pending. Once the appeal is decided then in terms of first part of Section 16 of the Act, the Director G....