2003 (7) TMI 74 - SUPREME COURT

Whether over-invoicing of the goods for export would mean attempt to export 'prohibited goods'?

Whether, while exporting the good, exporter has to give value of the goods as provided under Section 14 of the Customs Act, 1962 (hereinafter referred to as 'the Act') or the value of goods which he expects to receive on sale of goods in the overseas market?

Held that:- In the present case, as found by the authorities, 28,000 pieces of ladies skirts at the rate of $10.25 per piece, export value of which was mentioned as ₹ 1,21,54,447/-, were sought to be exported. The market price of such skirts was ascertained to be ₹ 45/- per piece and on that basis total value of the goods came to be ₹ 9,53,280/-. The exporter claimed a drawback of ₹ 21,87,800/- on the consignment on the basis that value of each skirt was ₹ 78/- per piece. No doubt, during the enquiry exporter admitted that the market price of ₹ 45/- per piece was acceptable to him and the claim for drawback was withdrawn. Thereafter, the exporter has not led any evidence that export value mentioned in the shipping bill was the true sale consideration for the goods sought to be exported.

Considering the aforesaid facts and also the fact that this was the second case belonging to the same exporter, the authorities arrived at the conclusion that it was an organized racket to claim fraudulent drawback or an act of deliberate over-invoicing the readymade garments. Hence, the authority imposed redemption fine as well as levied penalty. In our view, this finding arrived at by the authorities below cannot be said to be, in any way, unreasonable which would call for interference by this Court in this appeal.

In the result, the appeal is dismissed.