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M/s. R.S. Graphics, Chennai Represented by its Managing Partner, V.B. Sridharan v/s The Revisionary Authority & Joint Secretary to the Govt. of India, Ministry of Finance


Company & Directors' Information:- L & T FINANCE LIMITED [Amalgamated] CIN = U65990MH1994PLC083147

Company & Directors' Information:- S P FINANCE PRIVATE LIMITED [Active] CIN = U65990MH1979PTC021790

Company & Directors' Information:- V L S FINANCE LIMITED [Active] CIN = L65910DL1986PLC023129

Company & Directors' Information:- L R N FINANCE LIMITED [Active] CIN = U65921TN1992PLC089288

Company & Directors' Information:- S M FINANCE LTD [Active] CIN = L65999TG1984PLC004526

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = L65999WB1993PLC058107

Company & Directors' Information:- B R D FINANCE LIMITED [Active] CIN = U65910KL1995PLC009430

Company & Directors' Information:- T C I FINANCE LIMITED [Active] CIN = U65920MH1973PLC017042

Company & Directors' Information:- A. V. B. FINANCE PRIVATE LIMITED. [Active] CIN = U65993DL1992PTC049818

Company & Directors' Information:- S M L FINANCE LIMITED [Active] CIN = U65910KL1996PLC010648

Company & Directors' Information:- S B FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008268

Company & Directors' Information:- INDIA FINANCE LTD. [Active] CIN = L65110WB1984PLC050214

Company & Directors' Information:- J J FINANCE CORPORATION LTD [Active] CIN = L65921WB1982PLC035092

Company & Directors' Information:- G V S FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008269

Company & Directors' Information:- G T P FINANCE LIMITED [Active] CIN = U65921TZ1991PLC003149

Company & Directors' Information:- S R K FINANCE PRIVATE LIMITED [Active] CIN = U65910UP1994PTC016038

Company & Directors' Information:- R N FINANCE LIMITED [Active] CIN = U74899DL1988PLC034289

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = U65999WB1993PLC058107

Company & Directors' Information:- C K G FINANCE PRIVATE LIMITED [Active] CIN = U65910KL1996PTC010147

Company & Directors' Information:- L N FINANCE LTD [Active] CIN = U65923WB1991PLC052876

Company & Directors' Information:- R K FINANCE LTD [Active] CIN = L65921WB1983PLC035896

Company & Directors' Information:- PARTNER FINANCE PRIVATE LIMITED [Active] CIN = U67100MH2016PTC283782

Company & Directors' Information:- V P C L FINANCE LIMITED [Active] CIN = U65920TG1996PLC023172

Company & Directors' Information:- A S GRAPHICS PRIVATE LIMITED [Active] CIN = U22219DL2006PTC151467

Company & Directors' Information:- J S M FINANCE PVT LTD [Active] CIN = U74140MP1995PTC009542

Company & Directors' Information:- I & D FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1991PTC021369

Company & Directors' Information:- L N FINANCE PVT LTD [Active] CIN = U65929AS1992PTC003766

Company & Directors' Information:- N B A FINANCE LIMITED [Strike Off] CIN = U74899DL1993PLC052393

Company & Directors' Information:- T P D FINANCE LIMITED [Strike Off] CIN = U67120RJ1994PLC008051

Company & Directors' Information:- R G L FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015809

Company & Directors' Information:- S K B FINANCE LIMITED [Amalgamated] CIN = U65999WB1996PLC082317

Company & Directors' Information:- J V FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC067873

Company & Directors' Information:- L C J FINANCE PVT. LTD. [Active] CIN = U65921WB1995PTC068809

Company & Directors' Information:- A N Y GRAPHICS PRIVATE LIMITED [Active] CIN = U74899DL1999PTC101851

Company & Directors' Information:- H L T FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1996PTC078128

Company & Directors' Information:- R N C P FINANCE LTD. [Dissolved] CIN = U67120WB1995PLC072339

Company & Directors' Information:- T T FINANCE LIMITED [Amalgamated] CIN = U67120DL1986PLC023168

Company & Directors' Information:- M M V R FINANCE LIMITED [Active] CIN = U65921TZ1997PLC007705

Company & Directors' Information:- D B FINANCE PRIVATE LIMITED [Active] CIN = U65191TN1989PTC016705

Company & Directors' Information:- M. GRAPHICS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC062981

Company & Directors' Information:- C H P FINANCE PVT LTD [Active] CIN = U65921PB1992PTC012788

Company & Directors' Information:- S L B P FINANCE PRIVATE LIMITED [Active] CIN = U74899DL1990PTC041694

Company & Directors' Information:- R S FINANCE PVT LTD [Active] CIN = U65191WB1988PTC044144

Company & Directors' Information:- I C FINANCE PRIVATE LIMITED [Active] CIN = U65921UP1989PTC011236

Company & Directors' Information:- V K FINANCE PVT LTD [Strike Off] CIN = U67120WB1991PTC052140

Company & Directors' Information:- A S L GRAPHICS LIMITED [Strike Off] CIN = U74899DL1995PLC065361

Company & Directors' Information:- C AND N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1998PTC094290

Company & Directors' Information:- C D R FINANCE LIMITED [Strike Off] CIN = U65910TG1995PLC022237

Company & Directors' Information:- J R FINANCE LIMITED [Active] CIN = U65921PB1996PLC017699

Company & Directors' Information:- I C S FINANCE LIMITED [Strike Off] CIN = U65921TZ1987PLC001991

Company & Directors' Information:- F S GRAPHICS PRIVATE LIMITED [Active] CIN = U74999DL1995PTC069655

Company & Directors' Information:- D D S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910DL1996PTC076165

Company & Directors' Information:- K V L FINANCE LIMITED [Strike Off] CIN = U65191TN1989PLC016715

Company & Directors' Information:- D A S FINANCE PVT LIMITED [Strike Off] CIN = U65921PB1993PTC012888

Company & Directors' Information:- U B FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1992PTC051300

Company & Directors' Information:- V L G FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910AP1997PTC027952

Company & Directors' Information:- E M S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921TZ1986PTC001789

Company & Directors' Information:- T D M FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U65923KL1997PTC011601

Company & Directors' Information:- S. F. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018702

Company & Directors' Information:- D S L FINANCE PRIVATE LIMITED [Active] CIN = U65921TG1996PTC023898

Company & Directors' Information:- R D P FINANCE PRIVATE LIMITED [Active] CIN = U65929DL1997PTC089092

Company & Directors' Information:- S R K C FINANCE LIMITED [Amalgamated] CIN = U65999TZ1989PLC002445

Company & Directors' Information:- R K N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC038377

Company & Directors' Information:- H A FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027064

Company & Directors' Information:- J K GRAPHICS PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U22200MH2006PTC163900

Company & Directors' Information:- V V A FINANCE LTD [Active] CIN = U65993WB1984PLC037171

Company & Directors' Information:- Y B FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921CH1996PTC017745

Company & Directors' Information:- D G L FINANCE LTD [Strike Off] CIN = U67120TG1993PLC015604

Company & Directors' Information:- J J GRAPHICS PRIVATE LIMITED [Active] CIN = U22212DL2005PTC139087

Company & Directors' Information:- S A GRAPHICS PRIVATE LIMITED [Active] CIN = U24204RJ2000PTC016086

Company & Directors' Information:- A R S GRAPHICS PRIVATE LIMITED [Strike Off] CIN = U22200DL1994PTC057444

Company & Directors' Information:- M S R FINANCE PVT LTD [Strike Off] CIN = U65191TN1989PTC016789

Company & Directors' Information:- Y K GRAPHICS PRIVATE LIMITED [Active] CIN = U25102RJ1999PTC015690

Company & Directors' Information:- S S P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1987PTC014526

Company & Directors' Information:- D & P GRAPHICS PRIVATE LIMITED [Active] CIN = U21012WB1998PTC087353

Company & Directors' Information:- C R N FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1994PTC062802

Company & Directors' Information:- B D GRAPHICS PRIVATE LIMITED [Strike Off] CIN = U17122WB1997PTC085037

Company & Directors' Information:- I FINANCE COMPANY LIMITED [Active] CIN = U67110DL2011PLC212268

Company & Directors' Information:- H AND Z FINANCE PRIVATE LIMITED [Active] CIN = U67190MH1995PTC093153

Company & Directors' Information:- Y AND K FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC019837

Company & Directors' Information:- S L P FINANCE PRIVATE LTD. [Strike Off] CIN = U65923DL1985PTC021970

Company & Directors' Information:- N B GRAPHICS PRIVATE LIMITED [Strike Off] CIN = U22219KA1998PTC023237

Company & Directors' Information:- V M FINANCE LIMITED [Strike Off] CIN = U65910PB1996PLC018339

Company & Directors' Information:- D S K FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010317

Company & Directors' Information:- G B V FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65110UP1988PTC010219

Company & Directors' Information:- P. K. GRAPHICS PVT LTD [Strike Off] CIN = U33111HP1987PTC007344

Company & Directors' Information:- B H FINANCE PRIVATE LIMITED [Strike Off] CIN = U65922KA1995PTC018390

Company & Directors' Information:- M .R .S . FINANCE LIMITED [Strike Off] CIN = U65929DL1995PLC067184

Company & Directors' Information:- H D FINANCE LTD [Strike Off] CIN = U67120DL1986PLC023675

Company & Directors' Information:- P R K FINANCE P LTD [Strike Off] CIN = U65191TN1995PTC033478

Company & Directors' Information:- T AND C FINANCE LIMITED [Strike Off] CIN = U67120RJ1996PLC012576

Company & Directors' Information:- W S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65192UP1996PTC020243

Company & Directors' Information:- S A C FINANCE COMPANY PVT LTD [Active] CIN = U65999WB1985PTC039002

Company & Directors' Information:- RS GRAPHICS PRIVATE LIMITED [Active] CIN = U93000TN2010PTC075067

Company & Directors' Information:- A N GRAPHICS PRIVATE LIMITED [Strike Off] CIN = U72200TG1998PTC028892

Company & Directors' Information:- C C FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC037805

Company & Directors' Information:- S R B FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010045

Company & Directors' Information:- P V FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027270

Company & Directors' Information:- R V S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65990KA1995PTC018436

Company & Directors' Information:- GRAPHICS INDIA PRIVATE LIMITED [Strike Off] CIN = U30006TN1996PTC035439

Company & Directors' Information:- P AND B FINANCE PVT LTD [Strike Off] CIN = U99999MH1986PTC038841

Company & Directors' Information:- B B P FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018183

Company & Directors' Information:- CHENNAI FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1995PTC030934

Company & Directors' Information:- A E FINANCE PRIVATE LIMITED [Active] CIN = U65999TZ1990PTC002905

Company & Directors' Information:- A AND S GRAPHICS PRIVATE LIMITED [Strike Off] CIN = U22219DL2003PTC120290

Company & Directors' Information:- L R FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65910UP1988PTC009758

Company & Directors' Information:- S B M FINANCE LIMITED [Strike Off] CIN = U65921PB1994PLC014374

Company & Directors' Information:- T A S FINANCE PVT LTD [Strike Off] CIN = U65191TN1990PTC018654

Company & Directors' Information:- S J GRAPHICS PRIVATE LIMITED [Active] CIN = U22219WB2002PTC095318

Company & Directors' Information:- D AND O FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054788

Company & Directors' Information:- H R P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921PB1995PTC015715

Company & Directors' Information:- P T R FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1989PTC016795

Company & Directors' Information:- B & S FINANCE PVT LTD [Strike Off] CIN = U65191TN1988PTC015491

Company & Directors' Information:- H S B FINANCE PVT LTD [Strike Off] CIN = U67120RJ1996PTC012119

Company & Directors' Information:- CHENNAI FINANCE CO PRIVATE LIMITED [Under Process of Striking Off] CIN = U65991TN1981PTC009023

Company & Directors' Information:- V B GRAPHICS PRIVATE LIMITED [Active] CIN = U29222AP2013PTC086412

Company & Directors' Information:- M. J. S. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1971PTC003049

Company & Directors' Information:- A R FINANCE PVT LTD [Strike Off] CIN = U65921PB1989PTC009778

Company & Directors' Information:- K G FINANCE LIMITED [Strike Off] CIN = U65910TZ1982PLC001219

Company & Directors' Information:- S AND Z FINANCE PRIVATE LIMITED [Strike Off] CIN = U65923PN1997PTC106520

Company & Directors' Information:- H S N FINANCE PVT LTD [Strike Off] CIN = U67120PB1993PTC013900

Company & Directors' Information:- G N FINANCE PVT LTD [Strike Off] CIN = U65990MH1981PTC024294

Company & Directors' Information:- C S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910GJ1987PTC009799

    W.P. No. 17745 of 2013 & M.P. No. 1 of 2013

    Decided On, 29 October 2020

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE M.S. RAMESH

    For the Petitioner: N. Viswanathan, Advocate. For the Respondent: Rajasekar, Advocate.



Judgment Text

(Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, calling for the records connected with Order No.58/2013-Cus dated 13.02.2013, passed by the respondent herein and to quash the same insofar as it confirms the penalty imposed under Section 114(iii) of the Customs Act on the petitioner herein.)1. With the consent of both parties, the present Writ Petition is taken up and heard through Video Conferencing on 21.09.2020.2. The brief facts of the case are as follows:-(i) The petitioner had filed six Shipping Bills dated 02.09.2011 under Drawback Schemes for the export of 28420.20 kgs of 'tissue paper in sheet form' under Drawback Serial No.40030010 and claimed 7.2% of drawback to the tune of Rs.1,27,891/-. The classification in Serial No.40030010 is for 'tissue paper in roll form', whereas classification for 'tissue paper in sheet form' is under Serial No.48030099, for which, the drawback is at the rate of 1%. Thus, instead of claiming the drawback at 1% which works out to Rs.44,689/-, the petitioner claimed drawback of Rs.1,27,891/-. The misclassification was noticed by the Customs and further investigated by the SIIB. On the request of the petitioner and upon recording the statements of the concerned personnel of the CHA, export clearance was granted.(ii) Through an Order-in-Original dated 22.03.2012, passed by the Additional Commissioner of Customs, Tuticorin, the impugned goods were confiscated under Section 113 of the Customs Act, 1962 on the ground of miscalculation on the entry number on the Drawback Schedule, with an option to redeem the same on payment of a redemption fine of Rs.75,000/- under Section 125 of the Customs Act. A penalty of Rs.80,000/- was also imposed under Section 114(iii) of the Customs Act (hereinafter referred to as the 'Act').(iii) On appeal, the Commissioner of Customs and Central Excise (Appeals), placed reliance on a judgment of the Hon'ble Supreme Court in the case of Commissioner of Customs Vs. Finesse Corporation Inc., reported in 2010 (255) E.L.T. A120 (SC) and held that since the consignment has already been exported and not available for confiscation or redemption, the confiscation order and optional redemption is unsustainable and accordingly, the confiscation and the option of redemption, were set aside. However, the Appellate Authority had found that the petitioner had mis-declared the drawback in serial number 40030010, with an intention to claim ineligible drawback amount and therefore, confirmed the penalty imposed under Section 114(iii) of the Customs Act. The imposition of the penalty in the Order-In- Appeal No.35 of 2012 dated 31.07.2012 was challenged by way of a revision under Section 129 (DD) of the Act, which was dismissed on 13.02.2013. The rejection orders are under challenge in the present Writ Petition.3. Heard Mr.N.Viswanathan, learned counsel for the petitioner and Mr.Rajasekar, learned counsel appearing on behalf of the respondent4. It is not in dispute that the petitioner had originally declared the goods under Serial No.40030010 in 'tissue paper in roll form' and claimed 7.2% of drawback. Subsequently, they had rectified the drawback to Serial No.48030099, which is for 'tissue in sheet form'. It is the contention of the learned counsel for the petitioner that they had no intention to miscalculate or mis-classify the goods and the wrong quoting of the DBK code was only by inadvertence, which was subsequently rectified when it was brought to their notice and therefore, the penalty should not have been levied.5. I am unable to accept such a contention. Section 114 of the Customs Act provides for imposition of penalty on any person who attempts to export goods improperly, which would be liable for confiscation under Section 113 of the Act. When the petitioner himself admits that they had quoted wrong DBK code at the time of export, the consequence of which would entitle them to claim 7.2% of drawback, such an act can be termed to be an attempt to export goods, which would be liable for confiscation.6. Pursuant to the rectification, the goods came to be exported and the petitioner also admitted that he had wrongly quoted the DBK Code as Serial No.40030010 instead of Serial No.48030099. Such a wrong-quoting can only be termed as 'misclassification'. Since the consequence of such miscalculation may entitle him to claim 7.2% of drawback, as against his entitlement of 1%, it would amount to an attempt on their part to export the goods improperly and therefore, the imposition of penalty under Section 114 of the Act, cannot be found fault with.7. The learned counsel also made a faint attempt by submitting that since the goods were allowed for clearance by the Assistant Commissioner of Customs, it would amount to acceptance of the wrong quoting of the DBK Code and therefore the orders of the Original Authority ought to have been reviewed under Section 129(D) of the Act. In support of such contention, he placed reliance on the decision of the CEGAT reported in 1987 (31) E.L.T. 400 (Tribunal) in the case of Decor India and others V. Collector of Customs, New Delhi, which decision of the Tribunal came to be confirmed by the Hon'ble Supreme Court in 1994 (94) E.L.T.A 51 (SC). The submission of the learned counsel for the petitioner seems to be misplaced8. In the Order-in-Appeal No.35 of 2012 dated 31.07.2012, the order of confiscation and the option to redeem, were set aside, by placing reliance on the decision of the Hon'ble Apex Court in Finesse Corporation Inc's case (supra) and the penalty under Section 114 (iii) of the Act was confirmed. As against this, it was the petitioner, who had preferred the Revision under Section 129(DD) of the Act, which came to be dismissed on 13.04.2013. The power to revise is a statutory power of the Central Government, to revise any order passed under Section 128A, where the order is of the nature referred to, in the proviso to Section 129A, which deals with payment of duty drawback. When the revision, filed at the instance of the petitioner, was rejected, there is no basis for the petitioner to claim that the orders of the Statutory Authorities ought to have been revived under Section 129D of the Act.9. The decision in Decor India's case (supra) of the Tribunal as confirmed by the Hon'ble Supreme Court, does not deal with the situation involved in the present case. In the Decor India's case (supra), the factual contention was that on the release of the goods under Section 47 of the Customs Act, if the Department was aggrieved, the option that would have been available is to file an appeal before the Commissioner of Customs under Section 128 of the Act and that the Department has no right to reopen the case. This contention was accepted by the Tribunal by holding that the Collector of Customs was not justified in not invoking the revisional powers under Section 129D (1) & (2) of the Act and issue a show cause notice, as if he was an Original Adjudicating Authority. Such a factual position is not the case here and therefore, the decision of the Tribunal as confirmed by the Hon'ble Supreme Court is distinguishable.10. As already stated, when the petitioner had admitted of having wrongly quoted the DBK code for the goods and thereafter rectified it itself would amount to misclassification and thereby attempted to export the goods improperly. A mere plea of 'inadvertence' may not absolve the petitioner and grant them immunity from penalty. The discretion of levying penalty is always available with the Statutory Authority under Section 114, whenever such an Authority is of the view that an attempt to export the goods are in such a nature that the goods would be liable to be confiscated under Section 113. Since the Original Authority was of the opinion that the petitioner attempted to ex

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port the goods through misclassification, this Court is of the view that the Authority was justified in levying the penalty.11. The confiscation order, with an option to redeem on payment of redemption fine, was set aside by the Appellate Authority only on the ground that the goods, since already exported, were not available for confiscation and therefore, the confiscation order is bad in law. It was not the finding of the Appellate Authority that the petitioner had not attempted to export the goods improperly. Hence, a mere setting aside of the confiscation order and the option of redemption, will not entitle the petitioner to escape his liability from penalty.12. For all the foregoing reasons, I do not find any merits in the present Writ Petition. Accordingly, the Writ Petition stands dismissed. Consequently connected Miscellaneous Petition is closed. No costs.
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