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M/s. Fairdeal Impex Versus CCE, Coimbatore

2016 (11) TMI 1201 - CESTAT CHENNAI

Valuation - mis-declaration of the description of export goods as well as the value thereof - DEPB benefit - duty drawback - Held that: - Entire contention of Revenue is substantiated from the adjudication record itself and also from the market enquiry conducted in respect of the goods attempted to be exported. Appellant failed to discard allegation of Revenue without any cogent evidence - In view of the concurrent findings by the authorities below and evasive practice adopted by the appellant m .....

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r:- (i) M/s. Fairdeal Impex, New Delhi was a merchant Exporter, having Certificate of Importer-Exporter Code No.3203000920 (ii) According to the Certificate IEC was issued on 25.4.03 by the Office of Joint Director General of Foreign Trade, Coimbatore having the address 727, Jothi Illam, Trichy Road, Ramanathapuram, Coimbatore-45 and having Branch-1 at 7/102, Sannathi Street, Thirumuruganpoondi, Avinashi Taluk, Coimbatore District and Branch (2) at 1/40, Basement, Old Rajinder Nagar, New Delhi-1 .....

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elhi form on M/s Priyanka Overseas, New Delhi and M/s Priyanka Overseas informed that the goods were supplied to them by M/s Alpha Export, New Delhi. (vi) The purchase price of goods quoted in the invoices of M/s Priyanka Overseas, New Delhi also appeared to be inflated value as they had not originally sent the goods and they had purchased the same from one M/s Alpha Exports. All the firms are trading company and the value appeared to be unreasonable since the market price of the goods are lower .....

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ed) whereas test report confirmed that the socks were made up of Filament Yarn of Polypropylene fibre. (ix) The product declared viz Knitted Socks (Blended) or socks made up of filament yarn is not eligible for DEPB benefit since the said product is not notified for DEPB rate as per Public Notice No.2 (RE-2003)/2002-2007 dated 31.03.2003. According to Annexure, under the Product Group Textile Products Code 89 only Cotton Socks (Knitted) is notified for DEPB rate against Sl.No.11. As no export sh .....

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the PMV ascertained only ₹ 27/- per piece. (xi) The Marked Value for the 20400 pieces of Knitted T Shirt exported under DEPB Scheme vide Shipping Bill Nos. 39336 and 39337 dated 7.11.03 was only ₹ 5,50,800/- against declared value of ₹ 50,65,830/-. (xii) M/s Fairdeal Impex failed to declare the true value of the goods and mis-declared the value and highly over invoicing the following goods exported with intention to get ineligible excess drawback. (xiii) 36288 pieces of Cotton .....

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. The actual PMV ascertained by the department was ₹ 100/- per piece for Tops and ₹ 90/- per piece for trousers and the total actual value worked out to ₹ 19,38,000/-. (xv) 1560 pieces of Cotton knitted T Shirt with hood and 3540 pieces of Cotton Knitted T Shirt without hood at ₹ 390/- for both items were exported under shipping Bill No.39382 dated 7.11.03 to the total FOB value of ₹ 19,89,000/-. The actual PMV ascertained by the department was ₹ 120/- per pie .....

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was ₹ 27/- per piece for 100% Cotton Knitted T Shirt and the total actual value worked out to ₹ 13,44,600/- (for 49800 pieces) [39385 - It has been referred in the Examination report on Shipping Bill No.39385 Not produced 61 carton ] Total FOB value declared for the goods exported Under Drawback Scheme Under Drawback Scheme : 2,71,88,910 Total actual/true value proposed to be adopted by the department based on PMV by the department based on PMV : 45,84,960 Difference in value : 2,26, .....

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o to claim excess drawback. 2. According to Revenue, from the above, it appears that the exporter with intention to claim undue pecuniary benefit in the form of DEPB scrips mis-declared the description of export goods as well as the value thereof. Offending goods were over-invoiced to claim DEPB benefit and that on ineligible goods (Knitted Socks-Blended) which is made up of filament yarn of polypropylene fibre and mis-declared the value thereof. It failed to furnish the true value of the goods .....

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y to law, rendering the goods liable for confiscation and the exporter liable for penal action under Section 114 of the Customs Act, 1962. 3. Revenue submitted that M/s Fairdeal Impex, New Delhi were directed to show cause to the Commissioner of Customs and Central Excise, Coimbatore, 6/7, A.T.D. Street, Race Course Road, Coimbatore-18 as to why- (i) the DEPB benefit in respect of goods exported under SB Nos. 39331, 39332 and 39333 dated 7.11.03 should not be denied as the exported product was n .....

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tment and the drawback should not be denied under Section 76 of the Customs Act, 1962 as the market price of the exported goods is less than the amount of drawback due thereon. (iv) the FOB value of the goods exported under Shipping Bill Nos. 39334, 39335, (Vests) 39380, 39381 and 39382 all dated 07.11.03 which were highly overvalued should not be re-determined as detailed below and the drawback should be allowed accordingly. Shipping Bill Nos Re-determined Value INR Declared Value INR 39334 and .....

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