TMI Blog2008 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... ication has been filed for directing the Department to release the goods, which are confiscated. Since the DGFT had issued a Notification dated 19-8-2008 lifting the ban on export of Non Basmati Rice (seed quality) and since the goods are perishable in nature due to a living organism contained in it, the appellant prayed for a direction to Revenue to permit the export of the consignment in question. 3. Shri G. Shiva Dass, the learned advocate, appeared on behalf of the appellants and Shri V.P.C. Rao, the learned SDR, for the Revenue. 4. We heard both sides. 5. The brief facts of the case are that the appellant filed a Shipping Bill dated 25-6-2008 for the export of 'Non-Basmati Hybrid Rice Seed' valued at Rs. 2,17,14,312/- and weighing 150 MTs. In terms of the DGFT Notification No. 93-(RE-2007)/2004-2009 dated 1-4-2008, export of 'Non Basmati Rice' has been prohibited vide Sl. No. 45A. The list of Tariff Item HS Code also includes 1006 10 10, which covers "Rice in Husk (paddy or rough) of seed quality". As per the Schedule to the Customs Tariff, Non Basmati Rice of Seed Quality is classifiable under CSH 1006 10 10. On the basis of intelligence, the DRI got the goods det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scription of the item sought to be placed under restriction and not by the code as stated in the Export Policy itself, which is as follows: "2. Code does not limit the item description The export policy of a specific item will be determined mainly by the description and nature of restriction in the schedule. The code number is illustrative of classification but does not limit the description by virtue of the standard description of the item against the code in the import part of the ITC (HS) Classification." 6.2 The Non Basmati Rice is classifiable at the six digit level under 1006 30 and is different from paddy which is falling under 1006 10. The mention of the heading corresponding to paddy seeds in column 1 cannot restrict the export of paddy seeds. The policy itself has stated that the codes indicated in the said column are not relevant for the purpose of interpretation of the Policy and what is relevant is the description of the goods mentioned in column 4 of the Policy. 6.3 Export Policy relating to seeds are covered under Sl. Nos. 49 to 58 of the 2nd Schedule to the Export Policy. In terms of the Policy, as per Sl. No. 50 of the ITC (HS) Classification of Export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the description of goods with an intention to mislead the department. It has been observed that the appellants attempted to export Non Basmati Rice, camouflaged as "Hybrid rice seed" in a bid to take advantage of the non specification of the said description in the relevant Notification. On this premise, the impugned order has held that the goods are liable for confiscation and accordingly, the orders were passed confiscating the goods. There is no truth in the allegations. What was exported was Rice seeds (Paddy). The goods were described as "Pioneer Brand Hybrid Rice Seeds PHB 71" in the invoice, shipping bill and all other shipping documents. The said variety is notified by the Ministry of Agriculture vide its Notification dated 9-9-1997. Thus, there is no misdeclaration or any violation of the provisions of the Customs Act in their exportation. The appellants made a true declaration and submitted all the statutory documents before the Customs authorities. Therefore, the goods exported by the appellant are not liable for confiscation and, therefore, no penalty is justified under Section 114(i) of the Customs Act. In a case of interpretation of the Policy, such a huge penalty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be exempted from the list of tariff items (non-basmati rice), which has been not permitted to be exported by DGFT vide their notification dated 1st April, 2008 with the following conditions: (i) DGFT may permit exports of hybrid rice seed upto 1500 tons annually. (ii) Packets of hybrid paddy seeds must carry a statutory warning that the seeds are treated with chemical insecticides and cannot be used for food or feed purposes. (iii) The hybrid paddy seeds can be exported only by Registered Seeds Producers. 4. This issues with the approval of Hon'ble Minister of Agriculture, Consumer Affairs, Food Public Distribution. Sd/- (Dr. Joy I. Cheenath) Joint Secretary to the Government of India 2338 2956 Directorate General of Foreign Trade, (Dr. Shyan S. Agarwal Addl. Director General of Foreign Trade). Udyog Bhawan, H-Wing, Gate No. 2, Maulana Azad Road, New Delhi - 110011 Department of Food Public Distribution I. D. No 8-12/2008-S I., dated 23-5-2008 In paragraph 2 of the said communication, it has been stated that the Hybrid rice seed (paddy) is chemically treated and cannot be used for food or feed purposes and is unfit for human consumption. It is furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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