2009 (8) TMI 1027 - AT - Customs

Summary

The Appellate Tribunal CESTAT AHMEDABAD, with judges Ms. Archana Wadhwa and Shri B.S.V. Murthy, heard the case of an applicant engaged in manufacturing and exporting flanges. The applicant imported flanges from China for re-export, but the department seized the goods at the time of export due to a lack of proper marking. Subsequent investigations led to the issuance of show cause notices proposing confiscation of goods, penalty imposition, and duty drawback denial. After adjudication, the seized goods were confiscated, penalties imposed, and duty drawback denied. The appellant's advocate argued that the department's case was based on the origin of the goods being mentioned as Indian in the invoices, while the appellant claimed they were re-exporting imported flanges. The advocate highlighted that the exported goods matched the imported goods according to examination certificates. The SDR contended that the goods' descriptions did not match. The judges found the penalty of Rs. 35 lakhs unjustified, considering the examining officers' certifications. They waived the pre-deposit requirement and allowed the stay petitions unconditionally.