2013 (1) TMI 957 - AT - Customs

Summary

Issues Involved:
1. Valuation of goods under export.
2. Imposition of penalties on various individuals and entities.
3. Role and responsibility of Central Excise officers and CHA in the fraudulent export attempt.

Summary:

1. Valuation of Goods under Export:
The appellants contended that the valuation of the goods should have been determined as per the Customs Valuation Rules, 1988, and not based on a market survey. However, the Tribunal found that the market survey was conducted for 3,300 pieces, and the value for the remaining 29,700 pieces was based on the National Import Data Bank. The appellants had accepted these valuations. The Tribunal held that the valuation method was appropriate, especially since the DEPB credit entitlement is capped by the present market value (PMV) of the goods. Thus, the contention regarding improper valuation was dismissed.

2. Imposition of Penalties:
The penalties imposed were considered excessive relative to the value of the goods and the DEPB credit involved. The Tribunal reduced the penalties as follows:
- Shri Rakesh Naik: Penalty reduced from Rs. 14 lakhs to Rs. 2,42,742/-.
- Shri Anil Arya: Penalty reduced from Rs. 14 lakhs to Rs. 2,42,742/-.
- Shri P.K. Sharma: Penalty reduced from Rs. 5 lakhs to Rs. 50,000/-.
- Shri R.A. Zaidi, Inspector: Penalty reduced from Rs. 50,000/- to Rs. 10,000/-.
- Shri M.S. Jeph, Superintendent: Penalty reduced from Rs. 50,000/- to Rs. 10,000/-.
- M/s. Shubham Impex: Penalty on the firm was set aside.
- Shri Sanjay Agarwal, CHA: Penalty of Rs. 1 lakh was set aside as there was no evidence of his involvement in the fraudulent transaction.

3. Role and Responsibility of Central Excise Officers and CHA:
The Tribunal found that the Central Excise officers did not follow proper examination procedures, indicating active collusion rather than mere negligence. The CHA, Shri Sanjay Agarwal, was not present during the examination and performed his duties based on the documents provided by the exporter. Therefore, no penalty was imposed on him.

Conclusion:
The Tribunal upheld the valuation of the goods at Rs. 2,42,742/-, the confiscation under Section 113(d) and 113(i) of the Customs Act, and the imposition of redemption fine. Penalties on individuals were significantly reduced, and the penalty on the CHA was set aside. The appeals were disposed of accordingly.