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Issues: Misdeclaration of export goods, confiscation, DEPB benefit, redemption fine, penalties on individuals, penalty on shipping line
The case involved an appeal regarding the misdeclaration of export goods, confiscation, DEPB benefit, redemption fine, and penalties imposed on individuals and a shipping line. M/s. Cytag Exports exported bicycle nylon tyres and tubes, declaring a value of US $52930, but parallel invoices showed a value of only US $13200, leading to a show-cause notice for misdeclaration and denial of DEPB benefit. The adjudicating authority confiscated the goods, imposed a redemption fine, and penalties on individuals and the shipping line. The Commissioner (Appeals) modified the order by setting aside the redemption fine. The appellant argued that the goods were not liable for confiscation as the correct value was declared for export, with the inflated value mentioned to save customs duty for the foreign buyer. They also claimed the DEPB benefit was surrendered before the show-cause notice. However, the Revenue contended that the inflated value was declared to obtain higher DEPB benefits, with evidence of manipulation in documents, leading to the goods being liable for confiscation. The Tribunal found that the goods were overvalued for DEPB benefits, with inflated values in export documents compared to invoices sent to customers. Relying on a previous court decision, the Tribunal upheld the confiscation of goods and imposed a redemption fine. Personal penalties were upheld for misdeclaration of value and production of forged documents. The penalty on the shipping line was set aside due to lack of evidence of connivance for DEPB benefits. Thus, the appeals were disposed of accordingly, with the redemption fine and penalties upheld for individuals but set aside for the shipping line.
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