2017 (3) TMI 829

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..... further specific intelligence, the appellants were issued a show cause notice alleging that they had exported the products by wrongly classifying the products under product code 62 at serial no. 42 of DEPB schedule and thereby claiming higher rate of credit. The appellants paid the duty demand along with interest. However, after adjudication, the original authority held that the goods are liable for confiscation under Section 113(d) of the Customs Act, 1962 and imposed penalty of Rs. 3 lakhs apart from confirming the duty, demand and interest. 3. The appellants contested the imposition of penalty before the Commissioner (Appeals) and vide order impugned herein, the Commissioner (Appeals) held that the goods are liable for confiscation unde .....

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..... e DEPB schedule and thereby they would be eligible only for less credit. This would not have come to light without the intervention of the department. It is also argued by the Ld. AR that the adjudicating authority though held that the goods are liable for confiscation in terms of Section 13(d), has discussed in para 24 and 26 that the goods are liable for confiscation under Section 113(i). That therefore, the observation of the Commissioner (Appeals) that the goods are liable for confiscation under Section 113(i) is legal and proper. He submitted that the penalty imposed is just and reasonable and therefore may be sustained. 6. I have heard the submissions made by both sides. In the Order-in-Original, adjudicating authority has held that .....

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..... serial no. of the product code of DEPB schedule. This indicates that it is not a vital material to be stated in the shipping bill. Therefore the provision contained in Section 113(i) also would not entirety be applicable to the facts of the case. There is no dispute with regard to the value declared or the classification of the goods. Therefore, I find that neither Section 113(i) nor Section 113(d) are attracted in the above case and therefore the penalties imposed requires to be set aside. 8. The Ld. Counsel for appellant has raised the ground that customs authorities do not have jurisdiction to issue show cause notice/demand in respect of credit taken on DEPB scripts. It is submitted by him that the jurisdiction in such matters would lie .....

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