2005 (12) TMI 466 - AT - Customs

Summary

Issues:
1. Misdeclaration of goods for availing higher drawback.
2. Discrepancy in declared value of goods for export.
3. Reliance on market inquiry and import documents for determining value.

Issue 1: Misdeclaration of goods for availing higher drawback
The case involved the appellants filing Shipping Bills for export under the Drawback Scheme, declaring a price of Rs. 97 per Kg for Heat Resistant Rubber Tension Tap. Customs authorities, after a market inquiry, found the actual market price to be Rs. 15 per Kg. The appellant was accused of misdeclaring the goods to obtain a higher drawback amount. The Adjudicating Authority confirmed the demand for drawback and imposed penalties. The appellant argued that the samples tested by Customs Laboratory confirmed the composition of the goods, while the market inquiry was conducted without showing the actual exported goods. However, the Tribunal dismissed the appeal, stating that the declared value was not supported by evidence, and import documents from UAE Customs contradicted the declared value.

Issue 2: Discrepancy in declared value of goods for export
The appellant contended that the declared value of Rs. 97 per Kg was accurate, supported by the composition of the goods tested by the Customs Laboratory. They challenged the market inquiry results, claiming that the actual goods were not shown during the inquiry. The Revenue argued that the market price was Rs. 15 per Kg, supported by inquiries from manufacturers of similar goods and import documents from UAE Customs. The Tribunal found that the appellant failed to provide evidence to substantiate the declared value, while import documents contradicted the declared value, leading to the dismissal of the appeal.

Issue 3: Reliance on market inquiry and import documents for determining value
The main dispute revolved around the value of the exported goods, with the appellants declaring Rs. 97 per Kg. The Tribunal considered the market inquiry results, which indicated a market price of Rs. 15 per Kg, and import documents showing a value of Rs. 4.50 per Kg at UAE Customs. Relying on precedents and import documents, the Tribunal concluded that the declared value was inflated to receive a higher drawback amount. As the appellant failed to provide evidence supporting the declared value, the Tribunal upheld the Adjudicating Authority's decision, dismissing the appeals.

This summary provides a detailed analysis of the judgment, addressing each issue comprehensively while maintaining the legal terminology and significant details from the original text.