2001 (7) TMI 136 - HC - Customs

Summary

Issues Involved:
1. Issuance of Duty Entitlement Pass Book (DEPB) for exported goods.
2. Authority and procedure for valuation and reassessment of exported goods.
3. Applicability and interpretation of relevant circulars and handbooks.
4. Return of seized documents relevant to DEPB applications.

Issue-wise Detailed Analysis:

1. Issuance of Duty Entitlement Pass Book (DEPB) for Exported Goods:
The petitioner, a registered partnership firm engaged in the export of silk fabric and finished glass beads, exported 33 consignments under the DEPB scheme. The DEPB scheme allows exporters to receive duty-free licenses for importing goods based on the value of their exports. The petitioner filed 29 applications for DEPB issuance, which were scrutinized and found in order by the department. However, DEPB was issued only for consignments 1 to 24, while consignments 25 to 29 were not issued DEPB despite final assessment and payment receipt. For consignments 30 to 33, the applications were returned due to the pending fixation of value caps. The court directed the authorities to issue DEPB for consignments 25 to 29 within 10 days and to process applications for consignments 30 to 33 within six weeks upon receipt.

2. Authority and Procedure for Valuation and Reassessment of Exported Goods:
The petitioner argued that the Customs Department, which made the final assessment of the exported goods, is the sole authority for such assessments. The Foreign Trade Department does not have the power to reassess. The court noted that the Customs Authorities had not issued any show cause notice for reopening the assessments. According to the relevant circulars, final assessments made after thorough market enquiries cannot be reopened. The court emphasized that only provisional assessments can be extended or reopened under certain conditions.

3. Applicability and Interpretation of Relevant Circulars and Handbooks:
The court examined various circulars, including Circular No. 69/97, Circular No. 79/98, and Circular No. 23/99, which outline the procedures for assessment and reassessment of exported goods. Circular No. 23/99 allows the Commissioner of Customs to extend the period of enquiry indefinitely but does not permit reopening final assessments made after 11-5-1999. The court referred to the Madras High Court's decision in J.G. Exports v. Commissioner of Customs, Chennai, which held that the value declared by the exporter is deemed accepted if the enquiry is not completed within the stipulated period.

4. Return of Seized Documents Relevant to DEPB Applications:
The petitioner requested the return of applications and documents seized during a search at the residence of an individual unrelated to the petitioner's case. The court directed the Customs Authorities to return the seized documents within 10 days, referencing a similar direction given in the case of Commissioner of Customs, Calcutta & Others v. Kanhaiya Exports Private Limited and Another.

Conclusion:
The court directed the concerned authorities to issue DEPB for consignments 25 to 29 within 10 days and to process the applications for consignments 30 to 33 within six weeks upon receipt. The Customs Authorities were also ordered to return the seized documents to the petitioner. Both appeals and applications were disposed of, and the prayer for stay was rejected.