2001 (11) TMI 156 - AT - Customs

Summary

Issues: Classification of exported goods for drawback claim, recovery of excess drawback amount, imposition of penalty

The judgment pertains to an appeal challenging the classification of exported goods for drawback claim, the recovery of excess drawback amount, and the imposition of a penalty. The appellants exported 100% Cotton Knitted Throws but claimed drawback under a different sub-heading. Upon examination, it was found that the goods were classifiable under a different sub-heading, resulting in an excess drawback claim of Rs. 26,56,896/-. The Commissioner ordered the recovery of the excess amount and imposed a penalty of Rs. 5 lakhs. The appellants contested this decision, arguing that the goods should be classified under the sub-heading they claimed. The Tribunal examined the description of the goods, manufacturing process, and relevant tariff entries. It was concluded that the goods fell under a specific sub-heading, entitling the appellants to a lower drawback rate. The recovery of the excess amount was deemed justified under the Customs Act and Drawback Rules. The penalty imposition was upheld, considering the appellants' misdeclaration to claim higher drawback. The penalty amount was reduced to Rs. 2 lakhs due to the partial payment made by the appellants. Ultimately, the Tribunal upheld the Commissioner's order with a modification in the penalty amount, disposing of the appeal accordingly.