2007 (5) TMI 47 - AT - Customs

Re-export Appellants imports various items or readymade garments but the goods were found defective and apply for permission of re-export of good After considering that good were defective, allowed the re-export of good

Summary

Issues:
1. Defective goods received by the Appellants.
2. Lack of specifications in the purchase order and invoices.
3. Departmental seizure and adjudication proceedings.
4. Request for re-export of goods by the Appellants.
5. Confiscation of goods and imposition of penalty.
6. Representation of high-value cases by junior officers.
7. Requirement for senior officers' presence in important cases.

Analysis:

1. The Appellants, a 100% EOU, imported goods for export but found them defective upon inspection. They promptly informed the Development Commissioner and Customs Department about the issue, seeking permission for re-export. The goods were found to be substandard and unhygienic during a subsequent visit by Departmental officers, leading to seizure and adjudication proceedings.

2. The purchase order lacked specific details about the goods ordered, making it difficult to ascertain if the supplied items matched the order. However, since the goods were not inspected by Customs before the Appellants reported the defects, the benefit of the doubt was given to the Appellants. The Appellants' request for re-export was supported by a relevant Board's Circular.

3. Considering that the Appellants were the first to notify the Department about the defective goods and requested re-export, the Tribunal concluded that the Department's decision to confiscate the goods and impose a penalty was unjustified. The impugned order was set aside, allowing the Appellants to re-export the goods within a specified timeframe.

4. The Tribunal highlighted the importance of senior officers' involvement in presenting crucial cases before the Tribunal, especially those involving substantial duty demands, fines, and penalties. It emphasized the need for proper representation to ensure a fair and informed decision-making process.

5. The Tribunal recommended that the Central Board of Excise and Customs issue a work allocation order similar to that of the Central Board of Direct Taxes, specifying that cases exceeding a certain value threshold should be handled by senior officers for effective representation and advocacy in important matters.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT, Kolkata highlights the issues, findings, and recommendations made in the case involving defective goods, lack of specifications, re-export request, and the importance of senior officers' involvement in significant legal proceedings.