2009 (8) TMI 1029 - AT - Customs

Summary

The Appellate Tribunal CESTAT CHENNAI, in the case of Ms. Jyoti Balasundaram and Dr. Chittaranjan Satapathy, JJ., reviewed an order disallowing DEPB credit of Rs. 2,61,385/- availed by the appellants due to the manufacturer of the exported goods being a 100% EoU. The Commissioner of Customs imposed a penalty of Rs. 50,000/- on the appellants for this reason. The appellants did not contest the disallowance of DEPB credit but challenged the penalty on the grounds that they had declared the manufacturer's status in the AR-4 form. The Tribunal ruled that the failure to declare the manufacturer's status on the DEPB shipping bill constituted a contravention of Section 50(2) of the Customs Act, thus justifying the penalty. However, considering the overall circumstances, the penalty was reduced to Rs. 25,000/-. The appeal was partially allowed, modifying the impugned order accordingly. The judgement was dictated and pronounced in open court.