2015 (11) TMI 259 - AT - Customs

Denial of benefit of DEPB Claim - Penalty imposed under Section 114(iii) of the Customs Act, 1962 for mis-declaration of goods - Shipping bill filed for clearance of 100% Cotton Terry Towels - Appellant accepts that mentioning of 100% was an unintentional mistake and not with a view to claim higher DEPB - Held That - Imposition of penalty is warranted as there is misdeclaration in shipping bills but same is reduced to ₹ 10,000.00 - Decided partially in favour of assessee.

Summary

Issues:
1. Denial of DEPB claim
2. Imposition of penalty for mis-declaration of goods

Analysis:
1. The Appellate Tribunal CESTAT AHMEDABAD addressed the issue of the denial of DEPB claim amounting to &8377; 62,164.06. The Adjudicating authority had denied the DEPB benefit to the Appellant, who had filed a shipping bill for the clearance of 100% cotton Terry Towels. The Tribunal noted that the Appellant had wrongly declared the export items as 100% Cotton Terry Towels (100% Cotton Ring Spun). The Appellant contended that the declaration of 100% cotton was a mistake without any intent to claim higher DEPB rates. The Tribunal acknowledged the mis-declaration in the shipping bills and upheld the imposition of a penalty. However, considering that the DEPB claim had already been denied, the Tribunal reduced the penalty from &8377; 20,000.00 to &8377; 10,000.00.

2. The second issue before the Tribunal was the imposition of a penalty of &8377; 20,000.00 under Section 114(iii) of the Customs Act, 1962 for the mis-declaration of goods in the shipping bill. The Appellant argued that the mis-declaration was unintentional and not for the purpose of claiming higher DEPB rates. The Tribunal recognized the mis-declaration and upheld the penalty but reduced it to &8377; 10,000.00 considering the denial of the DEPB claim. The Tribunal emphasized that although there was a mistake in the declaration, there was no intent to fraudulently claim higher benefits. Consequently, the appeal was disposed of with the reduced penalty amount.

In conclusion, the Appellate Tribunal CESTAT AHMEDABAD upheld the denial of the DEPB claim due to mis-declaration in the shipping bill but reduced the penalty imposed on the Appellant from &8377; 20,000.00 to &8377; 10,000.00 considering the circumstances and lack of fraudulent intent behind the mis-declaration.