Page 305 - ELT_15th July 2020_Vol 373_Part 2

2020 ] KAKA CARPETS v. COMMR. OF C. EX. (ADJUDICATION), NEW DELHI 287
release the same on payment of redemption fine of Rs. 20 lakhs. In addition pen-
alty of Rs. 15 lakhs stands imposed upon M/s. Kaka Carpets under Section
114(iii) of the Customs Act, 1962 and penalty of Rs. 5 lakhs each stands imposed
on the other two appellants Shri Yadavendra Kumar Roy and Ms. Rita Roy part-
ner of M/s. Kaka Carpets. The Commissioner has also rejected the declared val-
ue of exported goods and has accordingly reduced the drawback claim of the
appellants to Rs. 2,39,650/-.
2. After hearing both the sides duly represented by Shri Nikhil
Agarwal, Learned Advocate appearing on behalf of the appellants and Shri
Anupam Kumar Tiwari Learned AR appearing on behalf of the Revenue, we find
that M/s. Kaka Carpets, a partnership firm, is engaged in the manufacture and
export of carpet. They filed three shipping bills dated 10 June, 2008 for export of
‘Indian hand tufted woollen carpets’ along with invoices and relevant packing
list, in the office of the Assistant Commissioner of Customs, Inland Container
Department, Bhadohi. At the time of filing shipping bill by the CHA certain dis-
crepancies were noted by him and the appellant was accordingly informed. It
appeared that due to defect in the inventory software, wrong documents were
generated in respect of the carpets and as such wrong shipping bills were issued.
The appellant took the corrective measure immediately and submitted the re-
vised invoice and shipping bills along with packing list on the same very date.
The said revised documents were not accepted by the Customs Authority on 12
June, 2008. Thereafter the appellant again addressed a letter dated 13 June, 2008
to the Customs Authority and submitted the revised/correct documents with a
request to consider the said documents as relevant one. On 19 June, 2008, 100%
examination of the goods were conducted on the basis of revised shipping bills
and found to be correct. However, the Authority entertained a view that initially
the appellant had made a missdeclaration about the description of quantity,
quality and value of the goods, they have contravened the law.
Thereafter on 28 June, 2008 the appellants made a request for provisional
release of the exported goods which were subsequently assessed provisionally
on 30 July, 2008 and were allowed clearance for export on execution of a bond of
Rs. 1.5 crores and furnishing of Bank guarantee of Rs. 13,00,000/-. Let export or-
der was passed on 3 July, 2008 and consignment was exported on 3 August, 2008.
Thereafter the appellants were issued a show cause notice dated 18 August, 2009
proposing as to why the exported goods seized vide panchnama dated 28 June,
2008 at the declared FOB value of Rs. 1,43,69,013/- should not be confiscated un-
der Section 113(i) & (ii) of the Customs Act on account of misdeclaration of the
same as regards quantity, description, classification, value and drawback rate.
The notice also proposed imposition of penalty upon the exporter as also on
partners. The value declared by the assessee was also proposed to be rejected
and reduced and consequential drawback claim was proposed to be determined
at Rs. 2,39,650/- with a proposal to reject the balance claim of Rs. 19,44,329/-.
3. The appellant during the course of Adjudication pleaded that the en-
tire basis of show cause notice is misplaced inasmuch as on realizing their mis-
take of submission of wrong documents they have themselves submitted the cor-
rect revised documents. As per the revised documents the actual export value
stands declared by them along with the other particulars which fully tally with
the examination done by the Revenue. PMV is in excess of 9.99% to 10% of the
FOB values declared by them and as per the Board’s circular, the FOB value can-
not be rejected. In support they relied upon various decisions and also submitted
that they have received the full value of the same as per the bank release certifi-
cate. Accordingly prayer was made to drop the proceedings.
EXCISE LAW TIMES  15th July 2020  305