2003 (12) TMI 379 - AT - Customs

Summary

Issues:
1. False declaration in shipping bills for exporting shrimps.
2. Violation of Customs Act regarding false declaration.
3. Confiscation of goods and imposition of fines and penalties.
4. Identification of shrimps as cultured or sea-sourced.
5. Interpretation of markings on the cartons.
6. Examination reports by Export Inspection Agency.
7. Reliance on expert opinions and handbooks.
8. Benefit of doubt in favor of the exporters.

Analysis:
1. The case involved appeals by two exporters challenging orders of the Commissioner of Customs for false declaration in shipping bills regarding the export of shrimps. Show cause notices were issued for violating the Customs Act by making false declarations to claim more benefits than entitled, proposing confiscation of goods, and penal actions.

2. The exporters argued that the identification of shrimps as sea white was inconclusive based on visual inspection alone, as the Export Inspection Agency's report did not definitively establish the source of the shrimps. They presented certificates and expert opinions to support their claim, emphasizing that minor variations in color do not conclusively determine the source of the shrimps.

3. The Commissioner relied on markings on the cartons and examination reports to determine the nature of the shrimps. However, the exporters provided explanations for the markings, indicating internal control processes rather than sourcing information. The examination reports highlighted the need for complete identification in head-on-shell-on-tail-on shrimps for accurate species determination.

4. The Tribunal found that the Commissioner's decision was based on partial evidence and did not consider the exporters' explanations and certificates. The reliance on handbooks and expert opinions was deemed insufficient to definitively establish that the shrimps were not cultured. The benefit of doubt was given to the exporters, leading to the allowance of both appeals.