2005 (6) TMI 89 - AT - Customs

Summary

Issues: Valuation of export goods, DEPB claim, Overvaluation of goods

In the judgment by the Appellate Tribunal CESTAT, Mumbai, the Revenue filed appeals against the Commissioner (Appeals), Mumbai's order regarding the valuation of export goods, specifically 100% Cotton Knitted T-Shirts under DEPB. The respondent declared the FOB value and PMV for the goods, and the original adjudicating authority found the declared value fair but restricted the DEPB claim to 50% of the PMV. The Revenue contended that the FOB price was misdeclared and that the goods were overvalued. However, the Tribunal noted that no evidence supported the Revenue's claim of overvaluation, as similar T-Shirts had been exported at the same price previously without objections. Both the Commissioner (Appeals) and the lower authority had restricted the DEPB claim to 50% of the PMV, but the Tribunal emphasized that this restriction did not prove the absence of overvaluation. Despite this, the Tribunal upheld the Commissioner's order, stating that there was no evidence of overvaluation for the impugned goods and that the DEPB would be restricted to 50% of the PMV declared. Consequently, the Tribunal rejected the Revenue's appeals based on the lack of evidence supporting the claim of overvaluation.