TMI Blog2006 (12) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... rst Schedule to the Customs Tariff Act. In respect of three of these four Shipping Bills, they realized sale proceeds and thereby foreign exchange, whereby DEPB credit in two scrips was obtained. Sale proceeds under the fourth Shipping Bill (24-7-02) could not be realized and, therefore, the party did not seek DEPB credit on the export covered under that Shipping Bill. The goods exported under all the four Shipping Bills were rejected by the foreign-buyer, whereupon the appellants filed a Bill of Entry on 15-3-2004 declaring USA as the country of origin in respect of the entire quantity of the goods. SIIB, who examined the goods, foundthe original Shipping Bill marks on all packages. From these and allied findings, it appeared to the Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Sl. No. 2A of the Table. Certain specified goods other than those falling under Sl. No. 1 were covered by Sl. No. 2B of the Table. Goods other than those falling under Sl. No. 1 2 were covered by Sl. No. 3 of the Table. The importer s claim was under this entry and, accordingly, duty-free clearance was sought. This claim was rejected by the Commissioner, who, apart from confiscating the goods with option for redemption thereof on payment of fine and imposing penalty on the appellants, directed them to produce DEPB before the proper officer of Customs for debiting an amount of Rs. 7,06,344/- being the DEPB credit obtained by the party against some of the exports made by them. The redemption fine imposed by the Commissioner in lieu of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- (a) who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under Section 111, or abets the doing or omission of such an act, or (b) who acquires possession of or is any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111, shall be liable, - (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty [not exceeding the value of the goods or five thousand rupees], whichever is the greater; (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (ii) under Section 112(a) would be imposable on the importer. This takes us to the question as what is meant by Dutiable goods ? This is an expression defined under the Customs Act vide Section 2(14). Dutiable goods mean any goods which are chargeable to duty and on which duty has not been paid. In the present case, admittedly, during the material period, finished leather attracted duty at specified rate under the tariff but Exemption Notification No. 21/2002-Cus. (as amended) granted full exemption from payment of duty thereon. In other words, during that period, the Revenue was not entitled to charge any duty on the goods. Where duty is not so chargeable, the goods are said to be not chargeable to duty and, by virtue of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Customs Tariff Act. When the Customs Tariff Act itself provides that the import of drawings and designs under Heading No. 49.06 is free , it must follow that these drawings and designs, though goods, were not chargeable to duty. In view of the difference in the language of the Excise and Customs Acts, the decisions in the cases of Vazir Sultan and Wallace Flour Mills (supra) may not be very apposite and if no customs duty is chargeable either by reason of tariff not providing for it or because of the exemption notification, those goods will not be regarded as dutiable goods on which duty has not been paid . It is sufficient in the present case to observe that the drawings and designs which were imported by the appellant were correc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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