2000 (2) TMI 339 - AT - Central Excise

Summary

Issues:
1. Confiscation of export consignments for contravening Customs Act provisions.
2. Allegation of high value declaration for excess drawback.
3. Misdeclaration of export value and imposition of penalty.
4. Violation of Sections 76, 113(d), and 113(h)(ii) of the Customs Act.

Issue 1: Confiscation of export consignments
The judgment addresses the confiscation of two export consignments of readymade garments due to contravention of Customs Act provisions. The confiscation was ordered under Sections 113(d) and (i) of the Act, with a redemption fine and penalty imposed on the exporter. The exporter had declared values for the consignments, triggering an investigation by customs authorities regarding the declared prices compared to market prices, leading to the confiscation order.

Issue 2: Allegation of high value declaration
The case involved an allegation that the exporter declared a high value for the consignments to obtain excess drawback. The customs authorities conducted a market inquiry and alleged that the declared values were inflated. The exporter, upon being informed of this allegation, submitted a letter adjusting the declared value to Rs. 22 per piece to claim the applicable drawback, which was contested as not an admission of over-valuation.

Issue 3: Misdeclaration of export value and penalty imposition
The exporter argued that there was no misdeclaration of export value and presented a certificate of foreign exchange realization during the hearing to support this claim. It was contended that the exporter had received the full declared value of the consignments and had not admitted to over-valuation. The appellant believed that the confiscation and penalty imposition were unjustified based on these facts.

Issue 4: Violation of Customs Act provisions
The judgment analyzed the alleged violations of Sections 76, 113(d), and 113(h)(ii) of the Customs Act. It was found that the provisions cited by the customs authorities were not applicable in this case. Section 76 related to payment of drawback, which was not violated as per the declared values. Section 113 dealt with confiscation of goods, but no prohibition against exporting the garments was shown. Sub-section (h)(ii) of Section 113 was also deemed inapplicable as there was no evidence of wrong information provided for drawback fixation. Consequently, the confiscation and penalty imposition were deemed illegal, and the impugned order was set aside with the appeal allowed for the appellants.