2001 (6) TMI 149 - AT - Customs

Summary

Issues:
Alleged mis-declaration of goods for availing Duty Entitlement Pass Book (DEPB) credit, imposition of redemption fine and penalty, eligibility for DEPB credit, interpretation of export products under DEPB scheme.

Analysis:
1. The appeal involved a case where M/s. 21st Century Engg. Services contested an order-in-original by the Commissioner of Customs regarding the mis-declaration of goods for DEPB credit. The Commissioner imposed a redemption fine and penalty on M/s. 21st Century and disallowed DEPB benefits for certain shipping bills.

2. During the hearing, M/s. 21st Century argued that the exported goods were correctly declared as fabricated steel structure, eligible for DEPB credit. They referenced Tribunal decisions and emphasized that no show cause notice was issued. The Revenue reiterated the adjudicating authority's stance.

3. The Tribunal considered whether the goods exported by M/s. 21st Century were covered under the DEPB scheme. The appellants were merchant-exporters supplying items for a steel plant. The description on shipping documents matched DEPB credit rates for fabricated steel structure.

4. The Revenue alleged that full machinery was exported, ineligible for DEPB benefits. However, the Tribunal noted discrepancies in the shipping bill dates, lack of show cause notice, and absence of policy or legal provisions supporting the denial of DEPB benefits for machinery.

5. M/s. 21st Century explained their export process and procurement of materials for a steel plant in Oman. They clarified the nomenclature alignment with DEPB requirements and provided documentation to support their claim for DEPB benefits on exported parts.

6. The goods exported were part of facilities for a steel plant, not a complete plant. The Tribunal interpreted the DEPB credit rates and found no evidence that full machinery was exported. The exported items were individually listed with prices, indicating DEPB credit eligibility.

7. The Tribunal referenced the wide scope of goods covered by the term "structures" under DEPB rates, citing the Harmonised Commodity Description and Coding System. The export products fell within the definition of structures eligible for DEPB credit.

8. Considering the economic objectives of export policies, the Tribunal concluded that confiscation of goods and penalty imposition on M/s. 21st Century were unwarranted. The impugned order was set aside, allowing the appeal with consequential benefits as per law.