D.C. Mandal, Member (T)

1. By appeal No. C/385/88-D the appellants have challenged the Order-in-original No. AP/INT/22/86-Cus., dated 29.9.1987 passed by the Collector of Customs, Cochin in which he has demanded duty of Rs. 6,62,023.60 on the imported white Cardboard which was cleared duty-free under Notification No. 117/78-Cus. , dated 9-6-1978. The Collector has also held that the appellants were guilty of mis-declaration in the shipping bills relating to export of frozen shrimps which were liable to confiscation under Section 113 of the Customs Act, 1962 and since the goods were not available for confiscation, he has imposed a penalty of Rs. 50,000/- on the appellants under Section 112 of the Customs Act. The charge against the appellants was that they imported two consignments of White Cardboard through Madras Port free of duty in terms of the above notification against Advance Licence. According to the terms of the Advance Licence, the appellants were to export 2,50,000 Kgs. of frozen shrimps packed in 12,500 master cartons/packing materials weighing 40.9 M. Tons for an F.O.B. value of Rs. 1 Crore to foreign countries within six months from the date of import of the first consignment. The White Cardboard was imported by the appellants under bills of entry No. 3338 and 3339 dated 15.11.1984. According to the condition of the said notification the appellants were required to utilise the goods only for the purpose for which the goods were imported and they were not to dispose of the imported Cardboard without the prior approval of the concerned authorities. It was alleged that the appellants sold the imported Cardboard and exported frozen shrimps packed in cartons made from the indigenous Cardboard. Show Cause Notice was issued by the Assistant Collector of Customs, Cochin on 30-6-1986 asking the appellants to show cause to the Collector of Customs, Cochin. The appellants challenged the jurisdiction of the Collector of Customs, Cochin to adjudicate the matter in the High Court of Kerala by O.P. No. 3552/87-W. High Court disposed of the said Original Petition with a direction that Collector of Customs, Cochin should decide the question of jurisdiction raised by the appellants as aforesaid. In his Order-in-Original No. AP/INT/22/86-Cus., dated 2-7-1987, the Collector of Customs, Cochin held that he had the jurisdiction to adjudicate the cases although the White Cardboard was imported through Madras Port free of duty in terms of exemption notification against advance licence. Appeal No. CD/SB/3033/87-D has been filed by the appellants against the said Order-in-original dated 2-7-1987 challenging the Collector's decision regarding jurisdiction.

2. Appeal No. C/2974/87-D challenges Order-in-original No. AP/INT/17/86-Cus., dated 12.6.1987 passed by the Collector of Customs, Cochin in which he has confirmed the demand for customs duty amounting to Rs. 8,79,516.60 on imported White Cardboard. He has also held that the appellants exported the goods by mis-declaring the packing materials in the shipping bills which made the goods liable to confiscation under Section 113(1) of the Customs Act, 1962 and since the goods were not available for confiscation, he imposed penalty of Rs. 50.000/- on the appellants M/s. Pooppally Foods, Alleppey under Section 114 of the Customs Act. In this case, the appellants imported 49.2 M, Tons of White Cardboard, 31.5 M. Tons of Kraft paper and 4.5 M. Tons of Polythene Moulding powder free of duty under Notification No. 117/78-Cus., dated 9-6-1978, as amended, against advance licence. These goods were imported through Madras Port. White Cardboard was imported under Bills of Entry No. 287/84 and 288/84 dated 20-1-1984. The appellants were required to export frozen shrimps, froglegs, cuttle fish and other marine products packed in packing materials made of white Cardboard, kraft paper and polythene moulding powder for F.O.B. value of Rs. 1.5 crore. It was alleged that the appellants did not use the impo