2016 (9) TMI 1408 - AT - Customs

DEPB credit - export of cotton knitted T-shirts round neck - enhancemnet of declared FOB - Held that - it is not disputed that the goods which were exported are cotton T-shirts knitted round neck. It is also not disputed that the said T-shirts were of good quality and the declared quantity was also found to be correct - the adjudicating authority was correct in accepting the declared FOB value as correct. The First Appellate Authority has not considered the issue in a proper perspective and in a routine manner, set aside the impugned order - appeal allowed.

Summary

Issues involved:
1. DEPB credit on the export of cotton knitted T-shirts round neck.

Detailed Analysis:
1. The appeal was against Orders-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai-I regarding DEPB credit on the export of cotton knitted T-shirts round neck. The appellant declared the value for exports as Rs. 304/- per piece FOB and PMV @ Rs. 120/- per piece in all shipping bills. The examination report did not indicate any inferior quality or quantity shortage in the exported goods. The adjudicating authority accepted the declared value based on contemporaneous export prices and previous orders. The First Appellate Authority set aside the order due to a perceived gap between declared price and PMV.

2. The appellant argued that the First Appellate Authority did not provide sufficient reasoning for its decision. They contended that the declared FOB value of Rs. 304/- per piece was market comparable. The appellant also highlighted the examination conducted as per Standing Order No. 7777/2003.

3. The First Appellate Authority's conclusion was found erroneous by the Tribunal for several reasons. Firstly, the exported cotton T-shirts were of good quality with correct quantity. Secondly, the EDI data confirmed contemporary export prices accepted by the Custom House for similar goods. Thirdly, market verification was not conducted based on prima facie evidence as required by Standing Order No. 7777/2003. Finally, the adjudicating authority's decision was supported by a previous Tribunal case.

4. The Tribunal held that the adjudicating authority correctly accepted the declared FOB value. The First Appellate Authority's decision was deemed unsustainable and set aside. Consequently, the impugned order was set aside, and the appeal was allowed.