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2. Short facts leading to the appeals are that the respondents viz., M/s.Sri G.P.R.Leathers, Chennai and M/s.Parveen Leather Exports, Chennai, are exporters, in respect of finished leather. They submitted that shipping bills have been filed for export, of above said goods. Samples were drawn by CLRI in terms of Customs Facility Circular No.1/2014 dated 02.01.2014 and a report dated 07.10.2016, was issued by CLRI, Madras, certifying that the sample satisfy the norms and conditions prescribed by the Director General of Foreign Trade (DGFT) Public notice No.21/2009-14 dated 01.12.2009.

3. Subsequently, the entire consignments under Shipping Bills were examined by SIIB officers on 14.10.2016, in the presence of two independent witness, representatives of the concerned Customs Broker (who have filed shipping bill on behalf of the exporters/respondents) and the godown Supervisor of CWC Virugambakkam CFS. Samples were drawn for testing and verification under Mahazar dated 14.10.2016. Samples were sent to CLRI for testing on 14.10.2016. Subsequently, on testing and verification, CLRI, vide report dated 11.11.2016, forwarded the test results certifying that the samples do not satisfy the norms and conditions as laid down in DGFT Public notice No.21/2009-14 dated 01.12.2009, for the type of 'Finished Leather' as declared by the respondents.

(ii). Further, based on intelligence, the goods have been examined by the officer of SIIB on 14.10.2016 and representative samples were sent to the CLRI, Chennai for testing. The CLRI, Chennai have furnished their reports dated 09/10.11.2016 and 11.11.2016 to SIIB wherein it has been certified that the samples pertaining to these ten consignments does not satisfy the norms as per DGFT Public Notice No.21/2009-14 dated 01.12.2009. The copy of the CLRI reports are enclosed. The details of these ten consignments and CLRI reports dated 07.10.2016 received by Docks and the CLRI reports dated 09/10.11.2016 and 11.11.2016 received by SIIB pertaining are furnished in the Annexure-I.

(iii). Since both the reports initially furnished by the CLRI to the Docks and the subsequent reports furnished by CLRI to SIIB pertaining to these ten consignments are contradictory, further investigation is in process. However, the CLRI has certified that the goods meant for export pertaining to the ten consignments does not satisfies the norms and conditions as per the DGFT Public Notice No.21/2009-14 dated 01.12.2009 for the type of Finished Leather as declared vide their reports dated 09/10.11.2016 and 11.11.2016 for the samples drawn by SIIB. Further as per Sl.No.176 of Chapter 41 of Export Policy of ITC (HS) classification Unfinished leathers are not freely exportable. As per this provision, only leathers that conform to the definition of Finished Leathers given in Note 1 of Chapter 41 of Export Policy are freely exportable. Hence it is seen that these ten exporters have misdeclared the description and attempted to export and thereby to evade export duty of 60% [i.e for Semifinished Leathers - as per Export Tariff CTH 41, 43 (Hides and Skins and leathers, tanned and untanned, all sorts but not including manufactures of leather)]. Further these exporters have claimed undue drawback at 6% [i.e applicable drawback for Finished Leathers as per Drawback Schedule 2015]. Since the goods are liable for confiscation under Section 113(i)(ii) of the Customs Act, 1962 the same were seized in terms of Section 110 of the Customs Act, 1962 vide seizure Memos (10 Nos) all dated 16.11.2016 (w.e.f 14.10.2016 i.e. from the date of examination of the goods)."