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TMI Blog2009 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... 1AC and penalty of Rs. 50,000/- under Rule 209 of Central Excise Rules, 1944 ordered by the original authority. 2. Appellants are a 100% EOU engaged in the manufacture and export of polyester texturised yarn and cotton grey fabrics. They procured raw materials and consumables in terms of Notification No. 1/95-C.E. and 53/97-Cus. During the period 11/99 to 3/2000, appellant EOU cleared seven consignments of cotton grey fabrics under AR-4s issued from 27-11-1999 to 31-3-2000. These consignments had been removed for shipment by a merchant exporter by name M/s Eastern Exports, Chennai. The Authorities noticed that the merchant exporter had exported consignments under cover of DEPB shipping bills. As the export under cover of DEPB shipping bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimer certificate to the appellants undertaking that no export benefit would be claimed. Appropriate course open for the authorities was to recover the export benefit earned by the merchant exporter who was also a noticee in the proceedings. The merchant exporter had claimed DEPB benefit only against one AR-4 and not in the case of remaining six AR-4s. The Commissioner had wrongly confirmed denial of DTA entitlement relatable to the impugned consignments to the appellants. 4. We have heard both sides. We find from the impugned order that para 9.11 of the Export-Import Policy 1997-2002 permitted the EOU to export goods manufactured by it through a merchant exporter. Para 9.28 of the Handbook of Procedures laid down that the above permiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above communication, we would like to clarify as follows. (1) We had exported fabrics from M/s. Saritha Synthetics for AR-4 Nos 62, 74, 76, 77, 81, 82 to M/s. Texpro Industries, Srilanka. (2) By oversight, our clearing and forwarding agent had filed the wrong shipping bill (DEPB) instead of free bill. (3) We came to know of this mistake only after the shipments were completed as all the shipments had taken place in a short period. (4) After realizing our mistake, we had approached customs for conversion of the respective shipping bills to free bills. However, due to non-provision in the policy the customs were unable to do the same. (5) In the above context, we had sent our representative Mr. Raghunath to your office personally a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar No. 21/95 dated 10-3-95 issued by the CBEC in this regard is reproduced below : Normally the customs authorities should immediately inform the Development Commissioner in case a 100% EOU ceases production prematurely or fails to commence production or export within the stipulated period. In case the Development Commissioner initiates action against the unit for non-fulfillment of export obligation etc. simultaneously the customs authorities should issue show cause notice for failure to comply which conditions of Notification 13/81-Cus., dated 9-2-1981. The demand of duty should be confirmed only after a definite conclusion has been arrived at by the Development Commissioner. Lower authorities are bound by these Circulars and could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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