TMI Blog2018 (5) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis for granting DEPB benefit. But we are of the view that such a situation cannot be used to reject the transaction value. The circular can only be used for calculating/restricting the DEPB benefit. The evidence gathered by the department can at best raise doubt about the declared value. But such evidence cannot be used to reject the transaction value and redetermine the same in the case of the present case - confiscation and penalties set aside - appeal allowed - decided in favor of appellant. - C/411/2010 - Final Order No. 41275/2018 - Dated:- 17-4-2018 - Hon ble Smt. Archana Wadhwa. Member (Judicial) And Hon ble Shri V. Padmanabhan, Member (Technical) Shri S. Murugappan, Advocate, For the Appellant Shri R. Subramaniy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the Customs authorities to approach the Madras Research Centre of Central Marine and Fisheries Research Institute (CMFRI), Chennai, for ascertaining the value of the export goods. Accordingly samples were sent to CMFRI. The CMFRI in their response dated 01.04.2010 identified the nature of the body part of the fish in the export consignment and indicated price structure of local market for such goods. On the basis of such details, the customs department proceeded to reject the transaction value declared in the shipping bills, seized the impugned goods and proceeded to adjudicate the alleged offence. The appellant waived the issue of SCN but filed written submissions supporting their stand. During the personal hearing, the adjudicating a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on payment of fine of ₹ 10.00 lakhs and penalty of ₹ 5.00 lakhs. Further, a penalty of ₹ 5.00 lakhs was also imposed on Shri B. Faizul Ahamed, Proprietor of the appellant under Section 114 (iii) and Section 114 AA of the Customs Act, 1962. Aggrieved by the impugned order, the present appeal has been filed. 4. We have heard Shri S. Murugappan, Ld. Advocate for the appellant as well as Shri R. Subramaniyam, AC (AR) for the Revenue. 5. The Ld. Advocate for the appellant argued that the department was not justified in rejection of the transaction value declared for the export goods. Such rejection has been ordered on the basis of market enquiry as well as the opinion regarding such local market value by CMFRI. He furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 8,11,180/- to ₹ 63,696/-. 8.2. The valuation of export goods are required to be made normally on the basis of transaction value. The Customs Valuation (Determination of Value of the Export Goods) Rules, 2007, provided for the basis for determination of the value of the export goods. These Rules provide that the proper officer shall have the power to raise doubt on the declared value based on certain reasons which may include:- a) the significant variation in value at which goods of like kind and quality exported at or about the same time in comparable quantities in a comparable commercial transaction were assessed. b) the significantly higher value compared to the market value of goods of the kind and quality at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction, fabric weight, etc. The market survey dated 10-10-2002 made by the DRI does not contain the specifics of products for which the said market report was obtained. Similarly, the report of RB textile mills is also not very precise. In any case, the domestic market value of goods can only be used to curtail the drawback or DEPB admissible to the appellant in terms of Section 76 of the Customs Act. The domestic market value of the goods cannot be used to determine the FOB value of the export goods. Ld. AR has pressed hard on the facts that the appellants had admitted to the overvaluation and no immediate retraction, if any, was made. In these circumstances, the statements became admissible evidence. This assertion of the ld. AR is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered for sale in the course of international trade would be the value of the goods. 6. In the instant case, the declared value was @ USD 8.9 per pc which comes to approx ` 430 per pc. in respect of Dyed 5% polyester/35% viscose woven P/L EMBD Ladies- maxi dress - 720 pcs @ USD 8.90 per pc FOB. The declared value in respect of Dyed cotton woven P/L embd ladies garments - maxi dresses- 1232 pcs @ USD 11.00 per pc FOB comes to ` 525 per pc. The market enquiry conducted by Revenue showed that market price of said goods was ` 100/- and ` 275/- respectively. In the case of market prices have been obtained from RB textile mills of domestic market price ` 90/- and ` 250/- respectively. It is seen that market enquiry has been done without ..... X X X X Extracts X X X X X X X X Extracts X X X X
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