2017 (11) TMI 620 - AT - Customs

Duty Drawback - the department got the information and goods were reopened for examination and it was found that in the name of export goods, old/torn cloths were packed in the boxes. It is the allegation that this exercise was done by the appellant to get the excess duty drawback - Held that - the justice should not only be done but, it appears that it has been done. In the instant case, when appellant is ready to bear the cost of the independent authority then seized goods need to be re-examined in the presence of both the parties but under the supervision of the independent authority - matter remanded to the original authority to decide the issue denovo, after clubbing the pending issue pertaining to the mis-declaration and valuation of the goods and on the basis of the report of the independent authority - appeal allowed by way of remand.

Summary

Issues:
1. Appeal against the order passed by the Commissioner of Customs (Appeals), New Delhi regarding alleged misdeclaration and valuation of exported goods.
2. Request for re-examination of seized goods under the supervision of an independent authority.
3. Refusal of re-examination of seized goods by the authority despite the opportunity for cross-examination.
4. Appointment of an independent authority for re-examination and submission of a report to the Adjudicating Authority.
5. Agreement of both parties for the appointment of Dr. V. K. Agarwal as the independent authority and provision of advance fee for the same.

Analysis:
1. The appeals were filed against the order passed by the Commissioner of Customs (Appeals), New Delhi, regarding the alleged misdeclaration and valuation of exported goods. The appellant exported readymade garments, but upon examination, it was found that old/torn clothes were packed instead. The High Court ordered an opportunity for cross-examination, which the authority provided, but refused re-examination of the seized goods. The Tribunal remanded the matters for de novo decision, including issues of misdeclaration and valuation, to be based on the report of an independent authority.

2. The appellant requested re-examination of the seized goods under the supervision of an independent authority due to concerns of bias. The Tribunal agreed that re-examination should be conducted in the presence of both parties but under the supervision of an independent authority. The impugned order was set aside, and the matters were remanded to the original authority for a fresh decision based on the report of the independent authority.

3. Despite the opportunity for cross-examination, the authority refused re-examination of the seized goods. The Tribunal emphasized the importance of ensuring justice by allowing re-examination in the presence of an independent authority. The Tribunal set aside the impugned order and directed the re-examination of the seized goods under the supervision of an independent authority.

4. An independent authority, Dr. V. K. Agarwal, was appointed by the Tribunal for the re-examination of the seized goods. Both parties agreed to cooperate with the independent authority, and the appellant was required to provide an advance fee for the services. The independent authority was tasked with submitting a report directly to the Adjudicating Authority by a specified deadline.

5. The Tribunal, with the consent of both parties, appointed Dr. V. K. Agarwal as the independent authority for the re-examination of the seized goods. The parties agreed to provide full cooperation and advance fees for the services. The Tribunal disposed of the appeals with the direction for re-examination and submission of a report by the independent authority.