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2020 (2) TMI 234 - AT - CustomsExport of goods under DEPB Scheme - mis-classification of export products under the DEPB schedule with the intention of claiming higher DEPB credit - confiscation - redemption fine - penalty - HELD THAT:- It is not in doubt that the goods were declared in a particular manner in the export documents and that they were cleared by the department officers after assessment and examination. As per the description given in the documents, the DEPB schedule under which they claimed credit matched. There is nothing on record to show that the duplicate set of invoices which they prepared for the overseas importers were presented before the customs officers. Only subsequent investigations by the DRI resulted in unearthing of the documents including the duplicate set of invoices - the First Appellate Authority has not considered this aspect or given any findings thereon. Confiscation - redemption fine - HELD THAT:- During the relevant time Customs Act, 1962 extended to the whole of India [Section 1(2)]. There was no extra territorial jurisdiction to the Customs Act during the relevant period. A plain reading of Section 1(2), 2(19) and Section 113 shows that during the relevant period since the Customs Act extended only to the whole of India and not beyond, action under this act could be taken only within the country and not outside. Therefore, only the export goods, i.e., the goods which are to be exported could be confiscated. There was no provision to confiscate the goods which have already been exported. Therefore, in the present case, the First Appellate Authority was correct in setting aside the confiscation of the goods under Section 113 as this section did not provide for such confiscation - Since the goods cannot be confiscated under Section 113, the question of the order imposing a redemption fine under Section 125 also does not arise. Penalty - HELD THAT:- The penalty under Section 114 is dependent upon the goods being held liable for confiscation under Section 113 this penalty also does not sustain. This is a fit case to be remanded to the First Appellate Authority with a direction to give a specific finding with regard to the mis-declaration of the goods by way of duplicate set of invoices and the consequences of such mis-declaration on the eligibility of DEPB credit at the rate claimed by the respondent - The impugned order is upheld to the extent of setting aside confiscation imposition of fine and penalties are cancelled - Appeal allowed by way of remand.
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