2004 (1) TMI 548 - AT - Customs

Summary

Issues:
1. Dispute over duty liability calculation based on exchange rate.
2. Applicability of exchange rate as per rates certified by Bank of India.
3. Bar on raising new plea in proceedings.

Issue 1: Dispute over duty liability calculation based on exchange rate

The appellant, M/s. Danish Export Import, filed an appeal against the Order-in-Original passed by the Commissioner of Customs, challenging the duty liability calculation. The appellant had been granted an advance license requiring them to export a specific quantity and value of material. They fell short of the export target due to market conditions but did not dispute their duty liability. However, they argued that the Commissioner incorrectly applied the exchange rate for calculating duty, insisting that the rate certified by the Bank of India should have been used. The appellant emphasized that they had exceeded the export value limit stated in the advance license.

Issue 2: Applicability of exchange rate as per rates certified by Bank of India

The Senior Departmental Representative contended that the appellant had not raised the issue of exchange rate applicability as per rates certified by the Bank of India during the proceedings before the Commissioner. Referring to Section 14 of the Customs Act, it was argued that the exchange rate determined by the Central Government or ascertained in a manner directed by the Central Government should be used for currency conversion. The representative asserted that the rate confirmed by the Bank of India was not in line with the Customs Act's provisions on exchange rates.

Issue 3: Bar on raising new plea in proceedings

The Tribunal considered the submissions from both sides and noted that the appellant had not challenged the discrepancy between the required and actual exports as per the advance license. The Tribunal held that the appellant was precluded from introducing a new argument regarding the exchange rate during the appeal since they had not raised it before the Commissioner. Moreover, the appellant failed to demonstrate that the exchange rate adopted by the Department deviated from Section 14 of the Customs Act. Consequently, the Tribunal rejected the appeal, finding no merit in the appellant's contentions.

This judgment highlights the importance of raising all relevant arguments during the initial proceedings and the limitations on introducing new pleas during subsequent appeals. It also underscores the significance of adhering to statutory provisions, such as those governing exchange rate calculations in customs matters.