TMI Blog2007 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... per description, quantity and value disclosed in the bills. The consignments of the respondents were examined on different dates by DRI. 3. Consignment of R1 was examined by DRI on 7-1-1999 12-1-1999, Consignment of R2 was examined by DRI on 18-1-1999 25-1-1999, Consignment of R3 was examined by DRI on 14-1-1999 8-2-1999. 4. The Commissioner of Customs directed confiscation of all the goods under Section 113(d) and (i) of the Act and allowed to redeem of the same on payment of fine of Rs. 10,00,000/-, disallowed the export of readymade garments and claim of drawback. No penal action was invoked as DRI contemplated to seek separate adjudication in respect of the penal clause provided under the Act. Appeals were preferred before the Customs, Excise and Gold (Control) Appellate Tribunal (in short 'CEGAT') which allowed the appeals holding that there was no power of confiscation and there was no material placed to record to suggest that the goods did not correspond to any material entry made in the bills and the correctness of the FOB and description of the goods specified in the bills had not been disputed. 5. In support of the appeal learned counsel for the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any prohibition imposed under any law for the time being in force. 9. Further, Section 2(33) of the Act defines "prohibited goods" as under :- "prohibited goods" means any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported have been complied with." 10. From the aforesaid definition, it can be stated that (a) if there is any prohibition of import or export of goods under the Act or any other law for the time being in force, it would be considered to be prohibited goods; and (b) this would not include any such goods in respect of which the conditions, subject to which the goods are imported or exported, have been complied with. This would mean that if the conditions prescribed for import or export of goods are not complied with, it would be considered to be prohibited goods. This would also be clear from Section 11 which empowers the Central Government to prohibit either 'absolutely' or 'subject to such conditions' to be fulfilled before or after clearance, as may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce with the provisions of sub-section (1) of Section 14." Thereafter, relevant part of Section 14 reads thus :— "14. Valuation of goods for purposes of assessment. - (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be — the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and price is the sole consideration for the sole or offer for sale: Provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under Section 46, or a shipping bill or bill of export, as the case may be, is presented under Section 50; (1A) Subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt value is truly stated in the shipping bill, even if no duty is leviable, it can be referred, to for determining the true export value of the goods sought to be exported. 17. It is true that Section 50 of the Act inter aim provides that before exporting the goods the exporter shall make entry thereof by presenting to the proper officer in the case of goods to be exported, a shipping bill and a bill of export in prescribed form. The Shipping Bill Bill of Export (Form) Regulations, 1991 inter alia prescribes the said form. After that form is amended w.e.f. 15-6-2001, it is stated that exporter shall stated "Value - FOB/PMV where applicable". We are not required to deal with this aspect in this appeal as the goods were sought to be exported in the year 1998. 18. From the aforesaid provisions, mainly, Section 2(41) read with Section 14 of the Act and Section 18 of the Foreign Exchange Regulation Act, 1973, it is crystal clear that :- (a) Exporter has to declare full export value of the goods (sale consideration for the goods exported). (b) Exporter has to affirm that the full export value of the goods will be received in the prescribed manner. (c) If the full export value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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