TMI Blog1999 (6) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the quantum of credit to be made in the appellants Duty Entitlement Passbook scheme to 2% of the value of goods exported, instead of the 4% which is claimed by the appellants on the strength of that percentage having been sanctioned by the Office of the DGFT as per the scheme. 2. Heard Sri A.K.J. Nambiar, learned Advocate for the appellants and Sri S. Sankaravadivelu, learned JDR. 3. The learned Advocate takes us through the basics of DEPB scheme which is laid down in paras 7.25 to 7.42 of the Import Export Policy 1997-2002 and submits that this pass-book scheme is applicable for both pre-export and post-export cases. The facts in this case relate to claiming the benefits on post-export basis. 34 shipping bills were used to export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o vide their Circular No. 15/97, dated 3-6-1997 which is available at page 36 of the paper book and para 2 thereof reads as under :- 2. This matter has been re-examined. It has been decided that the sole of Customs authorities should be confined to verification of correctness of exporter s declaration regarding description, quantity and FOB value of the export product. It will be for the Licensing authorities granting credit to ensure that credit is permitted by them at the correct rate as notified by the DGFT. The learned Advocate, therefore, submits that the Order-in-Original and the Order-in-Appeal impugned are not legally correct, as the Customs Officers had no jurisdiction to sit on the judgment over a decision of the DGFT. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of DGFT. The learned DR submits that basically the rate of DEPB will depend on the description of goods. Since the Customs authorities are responsible to verify the correct description of the goods, therefore, since the declaration prescribed by the said Public Notice in Annexure A2 is not available with the DGFT, any discrepancy with relation to this evidence is necessarily to be considered by the DGFT, so that only the correct rate is given to the exporter. 5. We have carefully considered the rival submissions as well as the records of the case. We find that the Customs have examined the goods prior to export and have satisfied themselves that the general description of the goods as contained in the body of the shipping bill tallied wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been clearly delineated and the CBEC vide Circular No. 15/97, dated 3-6-1997 itself limits the role of Customs to that of verification of the description value etc. and not to the sanction of the amount to be credited in the pass-book. Therefore, we clearly find that the Assistant Commissioner had no legal powers to reduce the credit from 4% to 2%, as if he was sitting judgment over the sanction order by the DGFT. The correct legal position to have been followed in our view, would have been that the Customs authorities should have brought to the notice of the DGFT their doubts along with declaration in Annexure A-2 submitted by the appellants and then left it to the DGFT to take what-ever decision they so desired. We find that since th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke such reference to the Office of the DGFT concerned and effectively follow up the matter with that office, so that final decision, if any, is given by the DGFT in consideration of the said reference made to them by the Customs. 7. At this point, the learned Advocate submits that time frame needs to be prescribed for this matter, as the licence is to be expired by August, 1999 and once the licence so expires, the credit would not be available to the exporter, who would be faced with unjust situation. 8. In consideration of this request, we direct the Commissioner of Customs, Cochin Customs House to ensure personally that such a reference is sent to the concerned Office of the DGFT on a top priority basis and follow up with reminders. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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