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Sitaram Ramdhan & Co. Versus Commissioner of Central Excise, Jaipur

DEPB benefit - Misdeclaration of value - Appellant exported Drop Forged Combination Pliers Chrome Plated with Heavy Red Transparent Sleeve under DEPB scheme but revenue after examination, doubts about the eligibility of goods for DEPB and allowed the export on provisional basis under DEPB. After clearance of the goods it appeared that the FOB as well as PMV of the goods has been inflated and department rejected the declared FOB price because the price at which the appellant purchased the goods f .....

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14 of the Customs Act, 1962 and DEPB benefit is to be given with reference to the FOB value. So, when there is nothing wrong with the declared FOB value of the goods exported, the DEPB benefit can not be restricted to 16% of the PMV. Moreover, there is a built in the foreign trade policy to discourage the inflation of the FOB to claim the higher DEPB benefit. This mechanism is in the form of restriction in the policy that in the case where the DEPB benefit is available at the rate of 10% or mor .....

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an Singh, Member (T) Thrd Member on Reference : Shri Rakesh Kumar, Member (T) Majority Order by : Shri B.S.V. Murthy, Member (T) and Ms. Archana Wadhwa Member (J) Shri Piyush Kumar and Ms. Reena Rawat, Advocates, for the Appellant. Shri R.K. Mishra, AR, for the Respondent. ORDER [Order per : Archana Wadhwa, Member (J)]. - The appellant M/s. Sitaram Ramdhan & Co. filed a Shipping Bill dated 28-3-2003 for export of 78024 Nos. of Drop Forged Combination Pliers Chrome Plated with Heavy Red Trans .....

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local dealers at Jaipur. The prices of the pliers were ascertained in the range on the lower side for each size of the pliers as compared to the declared price accordingly. Further, investigations were conducted at M/s. Jindal Tools, Nagaur who had supplied the goods to the present appellant. He was also asked to inform the source of procurement of pliers supplied by them to the present appellant along with costing data. Statements of various persons were also recorded during the course of inve .....

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to their prices, he stated that this could be due to difference in quality of the goods with respect to metal, plastic sleeves, etc. Regarding purchase of goods for ₹ 77,90,424/- and export of the same only on ₹ 68,98,861/-, he stated that he planned to compensate this loss by the amount of DEPB to be received. 4. Shri Anand Prakash Pitti, proprietor of M/s. Jindal Tools, Nagaur, in his statement dated 28-8-2003 under Section 108 of the Customs Act, 1962 stated that he had suppl .....

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he stated that the pliers exported by him in 2001 were of low quality. Shri Pitti in his second statement dated 2-9-2003 stated that the pliers supplied by him to the said exporter, were of superior quality and chrome plated with good quality PVC sleeves. He refused to state the name & addresses of the local artisans from whom he purchased the pliers. He further stated that he has made the payments to these persons out of ₹ 80,00,000/- received from the said exporter; that the steel us .....

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Tools, Nagaur vide letter dated 24-9-2003 informed the names of 8 persons from whom they purchased the pliers for supply to the said exporter, were S/Shri Julfikar s/o Mohammed Harun, Abid Hussain s/o Mohammed Tahir Hussain, Faiyaz Ahmed s/o Jahoor Ahmed, Mujaffar Ali s/o Mohammed Ali, Babu Khan s/o Moose Khan, Kayum s/o Rajjak Khan, Salam s/o Gayasuddin, Sheru s/o Jamaluddin, all of Nagaur. Out of these 8 persons, only 6 persons namely S/Shri Salam, Sheru, Abid Hussain, Faiyaz Ahmed, Mujaffar .....

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wing purchase price of export goods as ₹ 77,90,424/-. As M/s. Jindal Tools had procured the goods manufactured from dealers/blacksmiths at Nagaur; they were asked to give the details of the said persons. However, M/s. Jindal Tools produced a Daily Purchase Statement giving details of the purchase of said goods from individual persons showing price of the goods ranging from ₹ 85/- and ₹ 91/- per piece. Ultimately, they disclosed the names of 8 persons from whom the goods were go .....

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It is seen that the adjudicating authority, adopted the price at which the pliers were supplied by the blacksmiths to M/s. Jindal Tools and added the expenses incurred for polishing, buffing and for chrome plating and cost of PVC sleeves. By adding reasonable mediator s margin, he arrived at the current PMV. Inasmuch as the declared FOB price was on the higher side, he determined the total PMV as ₹ 34,63,080/- and restricted the DEPB benefit to ₹ 5,54,093/-. He also imposed redempti .....

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he Revenue. 8. We have considered the submissions made by both the sides and have gone through the impugned order passed by the Commissioner. The issue to be decided in the present appeal is the correct value of the Drop Forged Combination Pliers Chrome Plated with Heavy Red Transparent Sleeve for the purpose of DEPB. The said goods were procured by the appellant from M/s. Jindal Tools, Nagaur, which is a proprietary concern of Shri Anand Prokash Pitti, who is appellant brother-in-law . The .....

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e has also referred to the said statement wherein Shri Pitti disclosed that the Pliers were also exported by him in the year 2001 at a less value. However, the adjudicating authority has failed to take into consideration the discloser made by Shir Pitti that the Pliers exported by him in the year 2001 at lower rate were not of the same quality as the Pliers involved in the present case. The goods supplied by him to the appellant were of superior quality and chrome plated with good quality PVC sl .....

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i Pitti and the present export goods were identical in quality. Shri Pitti has very clearly deposed that the goods exported by him in 2001 were of low quality. For adopting, the value of the other goods, they have to be contemporaneous in nature, i.e., they should match in respect of quality, quantity and time. Learned advocate appearing for the appellant has very strongly contested that the goods covered by the present Shipping Bill are Drop Forged Combination Pliers Chrome Plated with Heavy Re .....

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hat the said statement of Shri Pitti has to be held as correct reflection of facts. 9. The Commissioner has also relied upon of the market inquiries resorted to by the Department market prices stands ascertain from the dealers of such goods at Jaipur, which are much on the lower side. However, there is nothing on record to show that the said inquiry related to the identical goods. There are variety of goods available in the market ranging from the lower price to the highest price. If a plie .....

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sed the same. He has himself observed that such pliers manufactured by the Iron Smiths of Nagaur are crude and in unfinished condition, when the same were supplied to M/s. Jindal Tools. The said M/s. Jindal Tools further did grinding, polishing, buffing and other ancillary process to make them finished and marketable. This process, increased the cost of pliers. However, he has added the cost of such activities of polishing, buffing, chrome plating and PVC sleeves and has, after adding the mediat .....

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d by the Iron-Smiths, who are illiterate people and do not maintain any records. In the said price, he has added the cost of the various processes, which stands revealed by the artisans. There is no basis for the Commissioner to pick up the price of polishing, buffing, chrome plating, etc., has ₹ 6.50, ₹ 10/- and ₹ 1.50 respectively. In the business, the sale price of the goods cannot be decided based upon the cost of various process as and at set margin of profit. The Commissi .....

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ived from ICD, Jalandhar and Ludhiana indicating that the price of similar goods is ranging from ₹ 10.46/- to ₹ 3.86/- per piece. However, as the appellant have claimed that the goods supplied were of higher quality and are different from the goods exported from ICD, Jalandhar and Ludhiana. Learned advocate has submitted that the goods, which are being referred to by the Commissioner, may be the simple pliers whereas the goods in the present case are Drop Forged Combination Pliers Ch .....

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is coming in my mind is nail cutter. Whereas a simple nail cutter may be available at ₹ 10, a more sophiscated and a better quality may have a sale price tag of ₹ 150. The idea to take the above common example is to say that the same very goods may be available at different prices depending upon the quality of the material used and the design. To adopt the value of the other goods, Revenue has to establish beyond doubt that the goods are identical not only in design but also in qual .....

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l to understand that the same reasoning does not stand applied by the adjudicating authority to the statement of Shri Pitti, who has actually supplied the goods. The said statement of Shri Pitti was also recorded in terms of the provisions of Section 108 of the Customs Act, 1962, before a Gazetted Officer and during the course of investigation. The same is also supported by documentary evidences, in the shape of invoice, having been raised by him against the appellant, as also by the fact of rec .....

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er a contract order and they have received the entire consideration from their foreign buyer through the Banks. The said fact is not disputed by the revenue but stands rejected by the Commissioner on the ground that realization of foreign exchange equal to the FOB value cannot be accepted in the light of the judgment in the case of Olympia Overseas wherein it was held that the receipt of foreign receipt is no defence where overvaluation of the exported goods is conclusively proved. We find that .....

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having paid the entire consideration to him and M/s. Jindal Tools having accepted to have supplied the goods to the appellant at the value reflected in the invoice and in the light of our discussions that the evidences referred to by the adjudicating authority are not in respect of the same very goods, we find no reasons to reject the appellant claim and to uphold the impugned order. Accordingly, the impugned order is set aside and appeal is allowed with consequential relief to the appellant. (P .....

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her findings of Commissioner on overvaluation of goods exported to claim higher amount of DEPB was correct on the basis of evidences brought on record. 16. Following incriminating evidences are borne on record : (a) There was purported export of Drop Forged Combination Pliers Chrome Plated with Heavy Red Transparent Sleeve. These tools were procured from M/s. Jindal Tools. Nagaur - a proprietary concern of Sri Anand Prakash Pitti - who is brother-in-law of the appellant. Pliers exported in .....

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to be very low. On enquiry relating to 8 suppliers, it was found that two were non-existent. Other two admitted that no supply of pliers made by them. Four suppliers stated that the impugned goods were sold for ₹ 20/- to ₹ 25/-. (d) Enquiry was also conducted from ICD, Jalandhar and ICD, Ludhiana indicating that price of similar goods being exported from both ICDs ranging from ₹ 10.46/- to ₹ 3.86/- per piece. 17.1 S/B No. 2249, dated 28-3-2003 issued under DEPB schem .....

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of pliers as follows : (i) 8 Pliers = ₹ 101/- (ii) 7 Pliers = ₹ 96/- (iii) 6 Pliers = ₹ 91/- Total value ₹ 77,90,424/- 17.3 Market enquiry was conducted at Jaipur on 29-4-2000 and prices of pliers as ascertained are as follow : (i) 6 pliers - ₹ 61-64 (ii) 7 pliers - ₹ 63-65.5 (iii) 8 pliers - ₹ 67-69.75 17.4 It was found that pliers were grossly overvalued with intention to claim higher DEPB. M/s. Jindal Tools informed that goods were manufactu .....

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g goods at lesser price than purchased price, he stated that difference was to be compensated from DEPB. 17.6 Statement of Sh. Anand Prakesh Prop. Jindal Tools, Nagaur was recorded to ascertain value of pliers. He stated that he is brother-in-law of Sh. Dinesh Goyal. He exported similar goods in the last on 3-10-2011 and 4-10-2001 @ ₹ 23.87 and @ ₹ 12.73 respectively. In spite of repeated summons Shri Dinesh Goyal and Shri Anand Prakesh, did not respond nor appeared. Even Sh. Ab .....

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th of Nagaur tendered under Section 108 of the Customs Act, 1962 whose names were informed by Shri Anand Prakash Pitti as suppliers of pliers. In the said statements, these two persons have denied having supplied any such tools to M/s. Jindal Tools, Nagaur meaning thereby that the names of suppliers and details of purchases mentioned in the daily purchase statement are false and fabricated. (ii) He was shown the statements dated 21-2-2004 of Shri Faiyyaj Ali, Shri Abid Hussain, Shri Qayum Khan a .....

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d had made payment to them. In this regard he stated that he had neither obtained any bills for purchase nor obtained any receipts for payments made to the suppliers. 17.8 As the goods presented for export appeared to be overvalued, market inquiry was conducted for ascertaining PMV (Prevailing Market Value) Difference found out was as under :- Size of pliers Declared PMV (Rs.) Average PMV as per market inquiry (Rs.) Difference 6 99.38 62.50 36.88 7 102.00 64.25 37.75 8 104.61 67.88 36.73 18 .....

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details of purchase invoices. But he was not able to furnish as no such invoices were raised and received by him. However, he produced Daily Purchase Statement showing rate for ₹ 85 to 91 per piece of pliers. When asked to furnish names address of suppliers, he could not produce addresses. But he gave names of 8 persons. Out of such 8, two were untraceable and could not be traced. Two out of 6 above, denied supplying any goods to M/s. Jindal Tools, remaining four stated that they sold good .....

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ce showed Unit price for 8 Pliers as USD 2.00 (equivalent to ₹ 95.10), 7 Pliers as USD 1.95 (equivalent to ₹ 92.72) and 6 Pliers as USD 1.90 (equivalent to ₹ 90.35) and claimed to be sourced the export goods at the rate of ₹ 101/- ₹ 96/- & ₹ 91/- for 8 , 7 & 6 Pliers respectively from one M/s. Jindal Tools, Nagaur owned by his close relative (brother-in-law) under Invoice No. 201, dated 27-3-2003 for ₹ 77,90,424/- which were not considered genuin .....

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52/- per dozen for 7 plier and ₹ 186-264/- per dozen for 8 plier. (iii) Contemporary export price of similar goods as reported by AC, ICD, Jalandhar and Ludhiana were ranging from USD 0.22 to 0.67 per piece, which is equivalent to ₹ 10.46 to 31.86 per piece. (iv) Shri Anand Prakash Pitti, Proprietor of M/s. Jindal Tools, Nagpur, who supplied the export goods in his statement dated 28-8-2003 deposed that he himself also exported similar goods in the past on 3-10-2001 & 4-10-2001 @ .....

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and other 4 though confirmed supply but price quoted was only 20-25 (without sleeves, polishing, buffing, chrome plating, Commissioner accordingly concluded. Para 3.3 I further observed that Shri Anand Prakash Pitti of M/s. Jindal Tools, Nagaur in his further statement claimed procurement of 8 pliers @ ₹ 85/88/91 per pc, 7 pliers @ ₹ 90/- per pc and 6 pliers @ ₹ 85/- per pc from 30-40 local artisans but did not disclose their names & addresses and at last he vide lette .....

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f any goods and 4 persons namely S/o Shri Abid Hussain, Faiyaz Ahmed, Mujaffar Ali and Kayum admitted selling of unpolished, unbuffed pliers without chrome plating & PVC sleeves @ ₹ 20-25/- per piece and cost for polishing/buffing, chrome plating and PVC sleeves comes to ₹ 6.50, ₹ 10/- & ₹ 1.50/- respectively. Accordingly, after adding the above elements of costing and mediator s margin to the basic price of ₹ 20/- for a 6 plier, ₹ 22/- for a 7 plier a .....

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emsp;As per the provisions under erstwhile Section 14(1) of the Customs Act, 1962, in case of assessing the value for purpose of export, value is to be determined at the price at which such or like goods are ordinarily sold or offered for sale for delivery at the time and place of exportation in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for sale. As such, the correctness of value declar .....

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s made to ascertain the FOB in respect of the market price. Further, as per the guidelines for determination of PMV in respect of the export goods prescribed in C.B.E. & C. Circular No. 69/97-Cus., dated 8-12-1997, in the case of export goods purchased from open market, or from a manufacturer and the PMV cannot be determined following the prescribed procedure, the evidence of local prices of similar goods may also be accepted as PMV. In the instant case, I find the invoice of M/s. Jindal Too .....

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he PMV as declared by the exporter or as ascertained by the Customs authorities, the PMV shall be the basis for granting DEPB credit, and also as per Circular No. 77/2002-Cus., dated 27-11-2002 (para 5), where it is conclusively proved through investigations that the FOB value had been artificially inflated/manipulated by the exporter to avail of unintended higher DEPB benefits, the DEPB credit entitlement shall be worked out only on the PMV and not the FOB value. In view of the position discuss .....

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such high export price is not justified by market factors, which clearly establish the exporter s motive to defraud the public exchequer. Accordingly, I hold that the PMV ₹ 80,94,094/- and FOB value of ₹ 73,58,267/- declared by the exporter in his Shipping Bill No. 2249, dated 28-3-2003 are liable to be rejected and the true PMV is determined as ₹ 34,63,080/- and accordingly actual DEPB credit entitlement is restricted to ₹ 5,54,093/- instead of ₹ 11,77,323/-. 21.&e .....

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ting investigations. Only contention of the exporter was that no action can be initiated once foreign exchange equal to FOB value has been realized. In this regard judgment in the case of Olympia Overseas v. C.C., Cochin - 2008 (223) E.L.T. 114 (Tri.) (citation) is relevant where it has been held that the receipt of foreign remittance is no defence where overvaluation is conclusively proved. In the case of Om Prakash Bhatia s case [2003 (155) E.L.T. 423 (S.C.)] is also very relevant wherein it w .....

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goods to command a high value. Investigations also brought out that false documentations was made to defraud Revenue. Existence of suppliers remained in mystery. Aforesaid evidence borne by record reveals that Revenue was defrauded making higher DEPB/drawback by the appellant. 23. Since we have arrived at conclusion of fabrication of records and overvaluations, defrauding of Revenue in the form of DEPB is proved. There are clear ramifications of hawala/money laundering for which respective .....

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ees twenty five lakhs). There is no other interference in the findings. Ordered accordingly. Sd/- (Manmohan Singh) Member (Technical) DIFFERENCE OF OPINION Whether findings of Member (Technical) regarding fabrication of record and overvaluation of export goods and upholding Commissioner s Order with modification in penalty is to be upheld OR As per findings of Member (Judicial), there is no force in findings of Commissioner of Central Excise and Customs, Jaipur and consequently Order-in-Original .....

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se of DEPB benefit, the Prevailing Market Value (PMV) of the goods was declared as ₹ 80,94,094/-. The pliers being exported were of 6 , 7 and 8 in length. The shipping bill for export of this consignment had been filed at ICD, Jodhpur on 28-3-2003. The goods were examined, the samples of the goods were drawn and sent to CRCL for a test and the CRCL s report confirms the description of the goods that the goods are made of chrome plated steel and plastic part is made of PVC. Since there was .....

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. Jindal Tools, Ajmer. The proprietor of M/s. Jindal Tools, was one Shri Anand Prakash who had supplied the goods in question to the appellant at the rate of ₹ 85 to 91 per piece for 8 inch pliers, ₹ 90 per piece for 7 inch pliers and at the rate of ₹ 85 per piece for 6 inch pliers. On being asked to disclose the source of procurement, Shri Anand Prakash stated that he had purchased the goods from local artisans. But he disclosed the names and address of only eight local artisa .....

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lared PMV of about ₹ 80,94,094/-. Besides this, market enquiry was also conducted about the price of the pliers from several traders according to which the price of 6 inch, 7 inch and 8 inch pliers appeared to be ₹ 61 to 64 per piece, ₹ 63 to 65.5 per piece and ₹ 67 to 69.75 per piece respectively. The Investigating Officer were of the view that since the actual PMV of the goods is ₹ 34,63,080/- it is this value which should be adopted as the FOB price and the DEPB .....

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he determined the PMV of the goods as ₹ 34,63,080/- in place of the declared PMV of ₹ 80,94,094/- and declared FOB value of ₹ 73,58,267/- and restricted the DEPB benefit to ₹ 5,54,093/- as against the DEPB of ₹ 11,77,323 claimed by the appellant. He also ordered confiscation of the export consignment for misdeclaration of the value, but since the same had already been exported, the redemption fine of ₹ 8 lakh was imposed. Penalty of ₹ 73,58,267/- was imp .....

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ed FOB value and the declared PMV, the Member (Technical) by separate order dated 25-10-2013 rejected the appeal except for reducing the penalty on the appellant to ₹ 25 lakh. On account of difference between Member (Judicial) and Member (Technical), the point of difference as mentioned above has been referred to the undersigned for decision. 29. Heard both the sides in respect of the point of difference. 30. Ms. Shikha Sapra, Advocate, the ld. Counsel for the appellant, pleaded .....

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ry which was conducted behind the appellant s back; that the DEPB benefit in respect of the goods exported is 16% of the FOB value and the total DEPB benefit claimed is much less than the 50% of the declared PMV of the goods, that the DEPB benefit claimed is also less than 50% of the PMV determined by the department; that the PMV adopted by the Commissioner ₹ 34,63,080/- is even less than the market value of the goods as ascertained on the basis of market enquiry; that Tribunal in the case .....

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that this judgment of the Apex Court is binding on the Tribunal; that Tribunal in the case of Kanhyana Export Pvt. Limited v. Commissioner of Customs Court, Calcutta reported in 2006 (204) E.L.T. 295 has held that when the full amount of FOB value was received and the department has not refused this evidence and foreign buyers are not related to the exporter and there is no allegation of any flow back to the foreign buyers, the allegation of overvaluation export consignment would not be sustain .....

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Sh. Anand Prakash Pitti has not co-operated with the investigating officers; that though he claims to have procured the pliers from 30 to 40 local artisans, he could name only few of them and some of them have even denied supplying the pliers to them; that there is no justification for huge difference between the price at which the artisans supplied the pliers and the price at which M/s. Jindal Tools had supplied the pliers, in question, to the appellant, which is much higher than the price at .....

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both the sides and perused the records. 32. The declared FOB value of the export consignment is ₹ 73,58,267/- and the declared PMV is ₹ 80,94,094/-. There is no dispute that on examination by the Customs, the goods were found to be as per the declaration and even the chemical examiner s report also supports the declared description of the goods. There is also no dispute that the export proceeds have been realized in full and as such neither there is allegation nor there is evid .....

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pliers and ₹ 45.45 for 8 inch pliers. It is on this basis that PMV value of the goods has been determined as ₹ 34,63,080/- and the DEPB benefit has been restricted to 16% of this value. 33. DEPB benefit available to an exporter is given on the basis of the FOB value of exports not on the basis of the prevailing market price. In terms of para 7.36A of the Export & Import Handbook of Procedures in respect of products where the rate of DEPB scheme is 10% or more, the amount of .....

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termined the DEPB benefit as 16% of this amount. The order is totally silent about the FOB. FOB value of the goods is examined under Section 14 of the Customs Act, according to which for the purpose of the Customs Tariff Act, 1975 or any other law for the time being export, the value of export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export from India for delivery at the time and place of exportation, where .....

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Forum: Cess paid instead of SGST

Forum: Excise duty credit on finished stock at additional place of business.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Forum: GST rates on mobile recharge business

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC



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