The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the demand for Customs duty imposed on the export of synthetic fabrics without considering the Bank Realisation Certificate (BRC).
Prakash Ghosh, the appellant assessee had exported 12 consignments of synthetic fabrics and the assessee had utilized the benefit of the Duty Entitled Passbook ( DEPB) Scheme and the exports of the Appellant to Bangladesh were required to be certified by certifying Agency.
The assessee appealed against the order passed by the adjudicating authority for confirming the demand along with the penalty and interest.
H. K. Pandey and Arijit Chakraborty, the counsels for the assessee contended that in respect of all the 12 export consignments, the assessee had received the export proceedings through the bank and BRC Certificates issued by the bank were also submitted before the Adjudicating Authority and this proved that whatever value was taken by the assessee in the Invoices was also approved by the buyer, who had made the payments for such export invoices.
Tariq Sulaiman and S. Debnath, the counsels for the department relied on the decisions made by the lower authorities and contended that the demand raised by the department was as per the law and liable to be sustained.
The Bench observed that the department had not made any effort to verify as to what was the purchase price in India for such fabric and the assessee provided such details from their side, it was important for the department to carry out further investigation to find out whether the purchase price shown by the assessee was correct or not.
The two-member bench comprising R. Muralidhar (Judicial) and Rajeev Tandoon (Technical) quashed the demand along with penalty and interest while allowing the appeal filed by the assessee.
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