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TMI Blog2023 (6) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... estic market. Additionally, a small quantity had also been imported from Bhutan. In respect of all the goods, prior to export, the Appellant had undertaken manual processing by way of cleaning, cutting and re-sizing. After processing, the goods have been packed in bags and exported. After completion of exports, the Appellant had obtained 20 numbers of transferable DEPB scrips and thereafter sold them to different buyers. 2. A Show Cause dated 01.04.2014 was issued to the Appellant and the DEPB Transferees (Importers) alleging that FeSi exported during the relevant period had actually been imported from Bhutan. It was alleged in the Notice that the export incentives had been wrongly claimed by the Appellant as the goods exported were of Bhu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o take action against any DEPB license holder. The issue was referred to DGFT and they passed an order. Parallel action by the Commissioner of Customs on the same issue is bad in law. (ii) The goods exported have been procured from the domestic market as well as some imports from Bhutan. However, In respect of all the goods, prior to export, they have undertaken manual processing by way of cleaning, cutting and re-sizing. After processing, the goods have been packed in bags and exported. After completion of exports, the Appellant had obtained 20 numbers of transferable DEPB Scrips and thereafter sold them to different buyers. Hence there was no mis-declaration by the Appellants. (iii) The amount equivalent to import duties foregone due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confiscation? (b) Whether an amount equivalent to import duties foregone due to imports made by different importers on the strength of the DEPB Scrip's purchased from the Appellant can be recovered from the Appellant along with interest? (c) Whether penalties under Section 114 and 114AA imposable on the Appellant and its Director separately for the same offence? 7. We observe from the impugned order that the Appellant has exported FeSi under the claim of drawback/DEPB, declaring them as Indian origin. The department alleged that the exported goods were actually Indian origin. Hence, the department contended that the DEPB Scrips obtained by them are legally not tenable. Since the DEPB Scrip's were transferable, the Appellant sold them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Bhutan was reduced manually by labourers and that no mechanical processing was carried out in their warehouse. It indicate that the exporter had no factory to undertake any mechanical processing to make any further value addition to the FeSi in terms of the conditions stipulated under the DEPB Scheme. We observe that the exporter has accepted their liability and deposited an amount of amount of Rs 63,40,305/- and interest of Rs 11,83,617/- even before issue of the Notice. Since the exports were made by declaring the country of origin as 'India', we observe that there is a misdeclaration in the country orgin at the time of export. Accordingly, we hold that the confiscation of 2169 MT of FeSi in the impugned order is legally tenable. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 114 and 114AA are not sustainable. Accordingly, we set aside the penalties imposed under sections 114 and 114 AA on the Appellant and it's Director. 14. In view of the above discussion, we answer the questions raised in para 6 as below: (a) We hold that the 2169 MT of FeSi exported by the Appellant are liable for confiscation. (b) An amount equivalent to import duties foregone due to imports made by different importers on the strength of the DEPB Scrips purchased from the Appellant can be recovered from the Appellant along with interest. (c) Penalties under Section 114 and 114AA cannot be imposed on the Appellant and its Director separately for the same offence, since DGFT has already initiated action and imposed penalty for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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