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Issues:
1. Misdeclaration of goods for export and undervaluation. 2. Reliance on expert reports and evidence. 3. Justification for confiscation, penalty, and reduction of value. 4. Imposition of penalty on a partner of the exporter. Analysis: Issue 1: Misdeclaration of goods for export and undervaluation The case involved an exporter who tendered three shipping bills for the export of cut and polished synthetic stones. Upon examination, it was found that the goods were rough synthetic stones instead of cut and polished as declared, with a significantly lower declared value. The authorities alleged that the total value of the consignments should be much higher than declared. The Commissioner ordered confiscation of goods, clearance on payment of a fine, and imposed penalties on both the exporter and the partner. Issue 2: Reliance on expert reports and evidence The Commissioner heavily relied on a report from the Gemmological Institute of India, stating that most of the goods were rough synthetic stones. The appellant presented opinions from various bodies and experts supporting their claim that the goods were cut and polished. However, there was a lack of evidence to prove that the samples referred to by these experts were from the same lot tendered for export. The appellant declined an opportunity to re-examine the goods with their chosen experts in the presence of the authorities. Issue 3: Justification for confiscation, penalty, and reduction of value The Tribunal found the reduction of the goods' value to Rs. 3 lakhs and their confiscation justified, except for a small lot of cut and polished goods. The appellant's argument for leniency due to not accounting for the exports in the shipping bills towards an advance license obligation was rejected. The Tribunal upheld the fine for confiscation and penalties on the exporter. Notably, the penalty imposed on the partner of the exporter was set aside based on previous Tribunal decisions disallowing the imposition of penalties on partners in addition to the firm. Issue 4: Imposition of penalty on a partner of the exporter The Tribunal dismissed one appeal (C/652/97) and allowed another (C/653/97). The penalty imposed on the partner of the exporter was set aside, following the principle that penalties under the Act cannot be imposed on a partner in addition to those imposed on the firm.
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