2008 (1) TMI 734 - AT - Customs

Summary

Issues:
The main issues involved in the judgment are duty drawback denial, penalties imposed on the main appellants and excise officials, alleged false certification of export documents, contravention of Customs Act, waiver of predeposit, and lack of specific charges against excise officials.

Duty Drawback Denial and Penalties:
The Department alleged that M/s. Promising Exports Ltd. filed 9 Shipping Bills for export to Bangladesh claiming duty drawback, but the goods were not imported into Bangladesh as per the report received. The main appellants were denied duty drawback and penalized, with the Director of the company also facing penalties. The excise officials, who certified the export, were penalized for not conducting proper checks, even though they argued that no specific offence under the Customs Act was proven against them.

Certification of Export Documents and Contravention of Customs Act:
The main appellants and the Director of the exporting company claimed that they exported the goods as certified by Customs officials, with remittances received in foreign exchange. They argued that the penalized Director was not involved in signing the shipping bills. The excise officials contended that no specific offence under the Customs Act was established against them, questioning the penalties imposed under Section 117.

Waiver of Predeposit and Lack of Specific Charges:
After reviewing the case records and the report from Bangladesh, the Tribunal found no prima facie case for waiving predeposit for M/s. Promising Exports Ltd. They were directed to predeposit the drawback duty and penalty amount. However, the Tribunal waived the predeposit requirement for the excise officials, noting the lack of specific contraventions mentioned in the adjudication order. The Tribunal also found no evidence of personal involvement by the penalized Director and waived the predeposit requirement for them, expressing surprise that another Director who signed the shipping bills was not penalized.

Disposition:
All six stay petitions were disposed of with directions for predeposit by M/s. Promising Exports Ltd. and waiver of predeposit for the excise officials and the Director of the exporting company.