CENTURY KNITTERS (INDIA) LIMITED Vs. UNION OF INDIA
LAWS(P&H)-2019-9-127
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 05,2019

Century Knitters (India) Limited Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

JASWANT SINGH,J. - (1.)M/s Century Knitters (India) Limited-Petitioner No.1 and M/s Rajesh Hosiery Mills Private Limited -Petitioner no.2 have approached this Court under Article 226 of the Constitution through their Managing Director Mr. Rajesh Dhanda, seeking the quashing of Order-in-Appeal No.744 to 746 dated 7.8.2015 (Annexure P-13) whereby the Commissioner (Appeals)-First Appellate Authority has dismissed the appeal of the petitioners filed against the Order-in-Original dated 09.1.2014 (P-7) passed by the Additional Commissioner of Customs, New Delhi.
(2.)Petitioner nos.1 and 2 are two sister concerns situated at Ludhiana, engaged in the manufacture and export of Textile Garments, namely, Knitted Gents Shirts and Knitted Track Suits. Both the petitioners in April 2012 brought their consignments for export at Inland Container Depot (ICD) Tuglaqabad, New Delhi and filed different shipping bills claiming the benefit of Duty Drawback. The Directorate of Revenue Intelligence, Ludhiana (DRI) doubting the declared value detained the export consignments and drew samples. The DRI on the basis of the samples conducted a market inquiry and based on the statements of different witnesses as well as Market Inquiry Report dated 31.05.2012 the DRI issued Show Cause Notice dated 25.10.2012 (P-3) whereby the declared value was proposed to be rejected in terms of the Customs Valuation (Determination of Value of Export Goods) Rules 2007. In the show cause notice, the redemption fine in lieu of confiscation and penalty under Section 114 and 114AA of the Customs Act, 1962 was also proposed. The show cause notice P-3 culminated into passing of Order-in-Original dated 09.01.2014 (P-7), whereby Adjudicating Authority imposed fine and penalty upon the petitioners. The Adjudicating Authority during course of adjudication allowed cross examination of witnesses including shopkeepers i.e. Partap Singh, Proprietor of M/s Kaysons Garments, Ludhiana and Dharmesh Sharma proprietor of M/s Nisha Collections from whom Market Inquiry was conducted in their cross examination categorically denied the visit of DRI Officers on their shops as well as their purported signatures on the alleged market inquiry report dated 31.05.2012.
(3.)The Adjudicating Authority however passed an Order-in-Original dated 09.01.2014 Annexure P-7 relying upon the statements of the Investigating Officers and the aforesaid witnesses of the Market Inquiry Report.


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