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Issues:
- Mis-declaration of value in export of Printed Circuit Boards (P.C. Boards) - Allegation of over-invoicing and claim of drawback - Confiscation of goods under Customs Act - Penalties imposed on the appellants Mis-declaration of value in export of Printed Circuit Boards (P.C. Boards): The case involved appeals arising from an order imposing penalties on the appellants for attempting to export Printed Circuit Boards (P.C. Boards) at grossly overvalued prices. The F.O.B. value declared in the shipping bills was significantly higher than the actual market value of the PCBs, leading to suspicions of over-invoicing. The appellants claimed drawback based on the inflated value, triggering investigations into the matter. Allegation of over-invoicing and claim of drawback: The Department alleged that the PCBs were intended for use in black and white TVs, with prices per piece not exceeding a certain range. The Customs House clearing agents and intermediaries were accused of being complicit in over-invoicing to facilitate exports and obtain higher drawback amounts. The appellants were issued a show cause notice to justify the declared value and the drawback claim, leading to the adjudication by the Collector. Confiscation of goods under Customs Act: The Collector found that the appellants mis-declared the value of the PCBs, leading to a claim of drawback that was four times the actual market value. Reports from market inquiries and test reports confirmed the low quality and actual market value of the PCBs, contradicting the declared value. Consequently, the goods were deemed liable for confiscation under Section 113(i) of the Customs Act, in addition to becoming prohibited under the Export (Control) Order, 1988. Penalties imposed on the appellants: The Collector imposed penalties on M/s. Hari Impex and the partners for mis-declaration and attempting to claim higher drawback amounts. Shri V.S. Raghvan was penalized for actively participating in the export attempt with intent to misdeclare values. The appellants challenged the penalties, questioning the evidence and procedures followed during the investigation and adjudication process. Judgment Analysis: The Tribunal upheld the impugned order, confirming the penalties imposed on M/s. Hari Impex and the partners, except for Shri K.P. Singh, whose penalty was set aside due to lack of direct involvement. Regarding Shri V.S. Raghvan, the Tribunal reduced his penalty considering his role and financial circumstances. The Tribunal found the evidence presented by the appellants insufficient to dispute the mis-declaration and market value of the PCBs. The Tribunal clarified that valuation rules did not require international market value assessment, supporting the Collector's decision based on local market prices. Conclusion: The judgment affirmed the penalties imposed on the appellants for mis-declaration and attempting to claim higher drawback amounts through overvalued exports of PCBs. The Tribunal considered the evidence, procedural aspects, and individual roles in the export attempt, leading to the confirmation of penalties with a minor reduction for one appellant. The decision highlighted the importance of accurate valuation and compliance with Customs regulations in international trade transactions.
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