2020 (4) TMI 606 - AT - Customs

Overvaluation of export goods - consignments of cotton printed and dyed fabrics - rejection to declared value - substantial evidences to show overvaluation of goods or not - HELD THAT - The evidence produced by the appellant was not considered favourably on the sole ground that the same cannot be produced at the time of personal hearing of the matter. The Bank Realization Certificate submitted by the appellant proves the fact that the goods were exported and foreign currency to that extent was realized through the approved banking channel. Thus, under such circumstances and in view of the specific fact that the department has not produced any tangible evidence to show overvaluation of the goods, the adjudged demands confirmed on the appellant cannot be sustained. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Valuation of exported goods based on market enquiry report, rejection of declared value in Shipping Bills, imposition of redemption fine and penalty, consideration of evidence produced by the appellant, Bank Realization Certificate, appeal against adjudication order.

Analysis:
The case involved the export of cotton printed and dyed fabrics with declared values in Shipping Bills. The department conducted a market enquiry and found discrepancies between the declared value and the market value of the goods. Subsequently, show cause proceedings were initiated, leading to an adjudication order imposing redemption fine and penalty on the appellant. The appellant's submissions included the production of a Bank Realization Certificate to demonstrate that the declared value was realized through approved banking channels. The appellant also presented a cost sheet and other documents to support the actual FOB value declared for the exported goods.

During the proceedings, the department did not consider the evidence produced by the appellant, citing inability to produce the documents at the time of personal hearing as the reason. However, the Tribunal noted that the Bank Realization Certificate provided by the appellant confirmed the export of goods and realization of foreign currency through approved banking channels. In the absence of tangible evidence from the department to prove overvaluation, the Tribunal concluded that the adjudged demands against the appellant could not be sustained.

As a result, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant. The decision was based on the lack of concrete evidence supporting the department's claims of overvaluation, coupled with the appellant's submission of the Bank Realization Certificate as proof of the actual realization of the declared value through legitimate channels.