CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL CHENNAI REGIONAL BENCH - COURT No. III Customs Appeal No. 41159 of 2014 (Arising out of Order-in-Original No.23954/2014 dated 31.01.2014 passed by Commissioner of Customs, Custom House, No.60, Rajaji Salai, Chennai 600 001)

Commissioner of Customs, …. Appellant Chennai II (Import Commissionerate), Custom House, No.60, Rajaji Salai, Chennai 600 001.

VERSUS M/s.Shakthi Knitting Ltd. … Respondent No.1, 3^rd Street, Padmanabha Nagar, Adyar, Chennai 600 020.

WITH (II) Customs Appeal No.41160 of 2014 (Commissioner of Customs, Chennai II (Import) Vs P.R. Sundaravadivelu, Chairman/Director)

(III) Customs Appeal No.41161 of 2014 (Commissioner of Customs, Chennai II (Import) Vs P. Vijayakumar, Former Director)

(IV) Customs Appeal No.41162 of 2014 (CC Chennai II (Import) Vs S. Vasanth Kumar, Joint Managing Director)

(V) Customs Appeal No.41163 of 2014 (CC Chennai II (Import) Vs S.K.Vivekananda, Managing Director)

(Arising out of Order-in-Original No.23954/2014 dated 31.01.2014 passed by Commissioner of Customs, Custom House, No.60, Rajaji Salai, Chennai 600 001) APPEARANCE :

Shri Sanjay Kakkar, Authorized Representative for the Appellant Shri N. Muralikumar, Senior Advocate for the Respondent CORAM :

HON’BLE MR. P. DINESHA, MEMBER (JUDICIAL)

HON’BLE MR. M. AJIT KUMAR, MEMBER (TECHNICAL)

FINAL ORDER Nos.40591-40595/2025 DATE OF HEARING : 11.04.2025 DATE OF DECISION :09.06.2025 Per: Shri P. Dinesha After hearing both sides, we find that these appeals are arising out of common impugned Order-in-Original and hence, all the appeals were heard together and are being disposed of by this common order.

2. These appeals are filed by the Revenue against the common impugned Order-in-Original No. 23954/2014 dated 31.01.2014 passed by Commissioner of Customs (Seaport-

Export), Chennai.

3. The brief facts could be gathered from the OIO are that on specific intelligence that M/s.Sakthi Knitting Limited, Chennai were misusing the Target Plus Scheme (‘TPS’ for short) by utilizing the license obtained under TPS against export of Ready Made garments for import of plastic granules which allegedly did not have any broad nexus with primary product exported by them, DRI, Chennai Zonal Unit conducted investigation. Revenue felt that since the Notification No.32/2005-Cus. dated 08.04.2005 issued by the CBEC applies to the Target Plus Licence (duty credit Certificate) issued under the TPS based on the incremental growth in exports made; in terms of para 3 of the said Notification, the goods imported against a duty credit certificate issued under TPS shall not be transferred or sold, where the goods are imported by a merchant exporter having supporting manufacturers whose name and address are specified on the said licence, the said goods may be utilized by the said supporting manufacturers. Further, as per the Circular No.21/2007-Cus. dated 08.05.2007 issued by the CBEC, the holder of the certificate issued under TPS is permitted to import under TPS and get the same processed into possible resultant products only if the same has a ‘broad nexus’ with the product group as an input in the export product and is required to be used as an input in the product exported for which TPS benefit is sought.

4. There was a follow-up action during which it appears that statements of several persons were recorded during investigation. Paragraph 8 of the Order-in-Original reveals a reference being made by DRI, Chennai to the JDGFT, Chennai highlighting the discrepancies/inconsistencies in the export figures disclosed by the Assessee-Respondent herein. It was pointed out the deliberate mis-representation of export figures in Appendix 17D and the Annexures thereto, with a further request for urgent remedial action in the form of cancelling or modifying the license issued to the importer- Assessee. The same para reveals the fact that the JDGFT however, did not accept the above request of the investigating agency and in response to their letter, it was