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TMI Blog2021 (7) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... thvikk Garments (appellant in Customs Appeal No.40207/2021) manufactured 'knitted Girls Pyjama' using the 'knitted fabrics' manufactured by M/s. Sri Angallamman Knit Fabrics (appellant in Customs Appeal No.40206/2021) who manufactured the said knitted fabrics by using the capital goods imported under EPCG Licence No.3230021861 dated 18.02.2015. Appellant viz. M/s.Rithvikk Garments as third party exporter, filed Shipping Bill dated 03.12.2019 in Custom House, Tuticorin for export of 28908 sets of Knitted Girls Pyjama after endorsing the EPCG license as above pertaining to M/s.Sri Angallamman Knit Fabrics. Noticing certain discrepancies, they were asked by the officers to produce the invoice raised for the goods exported by EPCG licence. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Act. Aggrieved by such order, the appellants are now before the Tribunal. 3.1 Ld. Consultant Shri R. Periasamy appeared for the appellants and argued the matter. He submitted that M/s. Sri Angallamman Knit Fabrics was issued EPCG Licence No.3230021861 dated 18.02.2015 by DGFT. As per this licence, they have to fulfill the obligation of export of goods manufactured using the capital goods imported by them. The said licence / notification also allows export through a third party exporter. M/s. Sri Angallamman Knit Fabrics and M/s.Rithvikk Garments had entered into an agreement dated 26.08.2019 wherein it was mutually agreed for giving effect to the EPCG licence conditions and for execution of export orders of garments under job work ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e para-5 of the said circular. 3.2 With regard to the allegation of overvaluation of the cargo, it is explained by the Ld. Consultant that both the appellants in their statements given before the Customs officers have explained the reason why an amount of only Rs. 1,82,120/- was only shown in invoice No.470 dt. 11.10.2019. The appellant M/s.Rithvikk Garments purchased cotton yarn which was given to M/s. Sri Angallamman Knit Fabrics who manufactured knitted fabrics using the imported capital goods. Thus, Sri Angallamman Knit Fabrics acted as a job worker for M/s.Rithvikk Garments. The knitted fabrics were sent to Rithvikk Garments who, after job works like dying, compacting, ironing etc., manufactured garments in their factory. These garmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. So also, they have not fulfilled export obligation as per EPCG licence. Therefore the impugned order does not require any interference. 5. Heard both sides. 6. The first and foremost question to be decided is whether the allegation that the appellants have not fulfilled export obligation is sustainable or not. On perusal of EPCG licence it is seen that it is issued in 2015 by DGFT and the period for completion of the export obligation is six years. Show cause notice has been issued on 18.11.2020. The contention of the appellant that SCN alleging non-fulfilment of export obligation is premature is therefore not without merits. 7. The second allegation is with regard to overvaluation of the export goods in the shipping bills. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.10.2019 that the rate of Rs. 6/- set is the charge for the removal of contamination in yarn"; 8. So also, Shri A. Chinnaswamy, Proprietor of Sri Angallamman Knit Fabrics has stated that Invoice No.470 dt. 11.10.2019 was raised for job work charges and not for supply of finished goods. The appellant has produced various challlans as proof of supply of yarn by Rithvikk Garments to Sri Angallamman Knit Fabrics. So also there are several invoices produced to show that M/s.Sri Angallamman Knit Fabrics was job work-manufacturer and was using the imported goods for manufacture of knitted fabrics which was later made into knitted garments by Rithvikk Garments. From the conditions of the EPCG licence, it is also seen that licence holder may disc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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