2011 (8) TMI 207 - AT - Customs

Non compliance of export obligation - the documents on the basis of which DGFT has issued redemption letter is required to be verified and enquiry to that effect is required to be undertaken - It is seen that the said enquiry form the DGFT can be made only at the departmental level - As such, while following the Hon ble High Court s direction, we set aside the impugned order and remand the matter to the Commissioner for undertaking enquiry form the office of DGFT as regards the documents, on the basis of which the said redemption letter stands issued by them.

Summary

Issues:
Appeal rehearing based on High Court order setting aside Tribunal's earlier decision due to dispute over shipping bills' authenticity.

Analysis:
The appeal was reheard following the High Court's order setting aside the Tribunal's decision. The core dispute revolved around the authenticity of shipping bills submitted by the appellants, which the Revenue alleged to be bogus. The appellants contested this, citing that the DGFT authorities had dropped a show cause notice on similar grounds and issued an Export Obligation Discharge Certificate (DODC), which the Tribunal had not considered. The High Court acknowledged this argument, emphasizing that the Tribunal failed to address the impact of the communication from the Joint DGFT regarding the issuance of the redemption letter based on documents supplied by the appellants. The High Court directed the Tribunal to examine these documents and reach a conclusion based on them.

The High Court highlighted that the verification of documents leading to the redemption letter issued by the DGFT needed to be conducted, which could only be done at the departmental level. Consequently, the Tribunal set aside its earlier order and remanded the case to the Commissioner for an inquiry from the DGFT office regarding the documents supporting the redemption letter. It was clarified that this remand was to comply with the High Court's directive, and no opinion was expressed on the matter. The adjudicating authority was granted the discretion to decide on the appeal's merits based on the findings of the inquiry.

In conclusion, the appeal was allowed for remand purposes, emphasizing the necessity of verifying the documents underlying the redemption letter issued by the DGFT. The case was sent back to the Commissioner for further investigation in line with the High Court's instructions, leaving the final decision on the appeal to the adjudicating authority following the inquiry's outcome.