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TMI Blog2007 (2) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods was allowed duty-free under Notification No. 203/92-Cus. dated 19-5-1992. Later the Directorate of Revenue Intelligence (DRI), Chennai gathered intelligence regarding evasion of Customs duty in respect of imports made in the name of the respondents under DEEC scheme and launched investigations into the above imports as also similar imports made by M/s. Goyal Dresses, Chennai. Statements were recorded from Shri S. Vaidyanathan, Managing Partner of M/s. Best Fabrics (respondents), Shri Bharat Goyal, a partner of M/s. Goyal Dresses and one Shri Rajesh Bhansali, an associate of Shri Bharat Goyal. These persons admitted that the goods in question had been imported for the purpose of sale in the market and not for utilisation in the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the noticees and after examining the evidence adduced by the party, learned Commissioner dropped the proposals made in the show cause notice and ordered immediate release of the goods to the respondents. 2. In the present appeal, the Revenue has challenged the decision of the lower authority except in respect of assessable value of the goods. The appellant has accepted USD 0.60 per metre as the basis for valuation of the goods for the purpose of levy of duty. However, the Commissioner s order in other respects is challenged on numerous grounds. The main ground raised in this appeal is that there was no basis for extending the benefit of doubt to the respondents where their Managing Partner had disowned the goods and had categoric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der. He submitted that the export obligation in relation to the subject import under the DEEC scheme has been substantially complied with before the import itself. Garments valued at over Rs. 84 lakhs had been exported against a total value of over Rs. 1 crore prescribed for exports under the scheme. Where nearly 84% of export obligation had been discharged by the respondents and the imported input material was seized by the officers of DRI, it was not correct for the department to take action against them on the ground of non-fulfilment of export obligation. Ld. Counsel further pointed out that the Commissioner s finding that the nylon tafetta fabrics imported by the respondents could be used in the manufacture of the export goods mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced during the hearing cannot be correlated to the export product, in the absence of evidence contrary to that produced during the personal hearing, I feel that the benefit of doubt can be extended to the licencee. Hence I hold that, the imported fabric is eligible for duty free importation under Notification Number 203/92-Cus. The allegations levelled in the Show Cause Notice therefore deserve to be dropped. Consequently, the importers would not be liable to bear any warehouse charges for the period the goods have been under seizure. It appears from the above order that learned Commissioner extended the benefit of doubt to the importer. He did so after examining certain samples of shirts produced by the party, from which it had appeared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, what was the need to give the benefit of doubt to the respondents? This poser of the appellant has not been convincingly answered by learned Counsel. The Textile Committee s samples of shirts are said to have shown that nylon tafetta fabric was used as innerlining therein. But the material imported by the respondents was nylon outerlining. Still, learned Commissioner would visualise the Textile Committee s samples to be samples of export products in this case! The appellant has claimed that fabrics identical to the one imported by the respondents were the subject-matter of the cases of M/s. Leatherman Fabrics (P) Ltd. and M/s. Suntex (P) Ltd. and further that such fabrics could be used as lining material in leather garments only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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