TMI Blog2017 (8) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... port exports of inferior quality goods at highly over inflated values. Perpetrators of such modus operandi have dubious intentions behind their actions, namely, to fraudulently claim ineligible drawback or other export incentives or even for the purpose of money laundering or hawala transactions. There can be no doubt that such attempts to defraud should be meted out with the adverse legal consequences that have been put in place. It has been proved beyond doubt that the alleged import and further onward attempt to re-export to Russia by manipulating/ fabricating the import documents and the value is very much in contravention of the provisions of Customs Act, 1962. This being the case, we are unable to find any infirmity with the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the CHA, GR Forms, export invoice meant for re-export to Russia and a copy of Contract No.TAL/SEL/038/01 dt. 19.10.2001. Examination of the goods revealed that the imported goods were of inferior quality, of Indian origin and that the goods were night wear in small size, were not suitable for wearing and the same could not be considered as garments as such. The quality of cutting and stitching were very poor and the garments were made of very inferior quality fabrics. The goods were packed in poor quality carton boxes, which were covered with polywoven bags. During the course of examination, 5 pieces of Indian Newspaper (English) cuttings and one Non-English Newspaper pieces were recovered. It thus appeared that the importer had made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with unit price of USD 56.00 carton. 1.4 Department initiated proceedings by way of issue of a Show Cause Notice dated 21.05.2002, interalia proposing confiscation of the goods imported vide Bill of Entry No.30887 dated 02.11.2001, fixing of assessable value of ₹ 15,31,994/- and imposition of penalty under Section 112 (a) of the Customs Act, 1962. On adjudication, the Commissioner (Appeals) vide impugned order dated 30.12.2005 confirmed the proposed demand of duty and ordered confiscation of the goods under Section 111 (d) (m) ibid, however gave option to redeem the goods on payment of fine of ₹ 3,82,000/- under Section 125 ibid was after payment of appropriate duty along with interest thereon. Penalty of ₹ 1,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from the Consulate General of India in Dubai, regarding the alleged declaration of FOB value of consignment as US$30296. However, the said letter as not relied upon Show Cause Notice nor a copy thereof being furnished to the appellant. 3. On the other hand, Ld. AR Shri B. Balamurugan, AC, appeared on behalf of the department supports the adjudication. 4. Heard both sides and have gone through the facts of the case. 5.1 We find that the core issue that come up for appellate decision in this matter concern the value of import sought to be re-exported by the appellant vide shipping bill dated 08.11.2011. Related issue is whether the main consignment is confiscable under the Customs Act, 1962? It is seen that the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the impugned import consignment though had been sent from Dubai to India had originally being imported from India itself by one Abdul Muhsen Shipping Est. Dubai on 12.07.2001 in 40 feet containers IKMU 500105-2 per vessel Xpress Kailash with country of origin declared as India. The import value for that consignment of 541 cartons of ladies nightwares was declared as US$30288. It further emerges that M/s. Abdul Muhsen Shipping Est., had cross-stuffed the consignment into another container and cleared for export to Russia from Dubai. That declared value of US$30296.00 and country of origin shown as India. These facts have been affirmed by the Department of Ports and Customs Dubai in the letter dated 22.05.2002 addressed to the Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by more than thirteen times of the value declared for the very same goods in Dubai. Exhaustive enquiries have further established that the purported overseas supplier M/s. Prestige General Trading, UAE existed neither as an importer nor as an exporter. 5.4 Every country including India, consistently encourages exports. With the intention of export promotion, Government has put in place various incentives to exporters like drawback, rebate, DEPB etc. But by no stretch of imagination can it be considered that the Government, or for that matter the legislature, would facilitate or support exports of inferior quality goods at highly over inflated values. Perpetrators of such modus operandi have dubious intentions behind their actions, namely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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