2018 (2) TMI 1685 - AT - Customs

Valuation of export goods - It appeared to revenue that the market value of the consignment was inflated by the exporter - Held that - the market enquiry of the value of goods was conducted in India whereas the goods were consigned for Dubai and the value said goods would fetch in Dubai was not enquired - since the export proceeds have been realized the declared value is found to be correct - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Challenge against Order-in-Appeal dated 04/11/2015 related to overvaluation of export goods.
2. Appellant's request for cross-examination of authorized representatives.
3. Reduction of declared value of goods and drawback amount by the Original authority.
4. Appeal before the Commissioner (Appeals) and subsequent appeal before the Tribunal.
5. Appellant's submission of written documents supporting correct declaration of goods.
6. Realization of export proceeds in respect of the goods in question.
7. Validity of market enquiry conducted in India for goods consigned to Dubai.

Analysis:

1. The appeal was filed against an Order-in-Appeal dated 04/11/2015 concerning the alleged overvaluation of export goods by the appellant. The appellant had presented shipping bills for export of garments and declared a total value of ?3,87,47,128, under the claim of drawback. A show cause notice was issued questioning the declared value, leading to a reduction by the Original authority to ?62,53,756, along with a corresponding reduction in the drawback amount and imposition of penalties and confiscation of goods.

2. The appellant requested cross-examination of authorized representatives involved in the market enquiry, which was denied by the Original authority. The appellant contested the issue before the Original authority, claiming that the market enquiry was unreliable as it was conducted without their presence.

3. The Commissioner (Appeals) upheld the Order-in-Original, leading to the appellant's appeal before the Tribunal. The appellant submitted written documents supporting the correct declaration of goods and the receipt of all remittances, emphasizing their experience as a star export house for over 10 years.

4. During the hearing, the learned A.R. argued that the case pertained to the overvaluation of export goods. It was noted that the market enquiry was conducted in India, while the goods were consigned for Dubai, and the value in Dubai was not considered. However, as the export proceeds had been realized, the Tribunal found the declared value to be correct, setting aside the Order-in-Appeal and the related Order-in-Original.

5. Consequently, the Tribunal allowed the appeal, holding that the appellants were entitled to consequential relief as per law. The decision was pronounced in court on 09/01/2018.