2000 (1) TMI 355 - AT - Customs

Summary

Issues: Valuation of export goods for duty entitlement pass book credit

Analysis:
The appeal filed by M/s. Sigma Indus. concerns the valuation of exported socks for duty entitlement pass book credit. The appellants declared the value as 0.9 US$ per pair FOB, which was deemed excessive to avail a higher duty exemption pass book credit. The adjudicating authority, the Addl. Commissioner (Exports), Air Cargo, determined the price at US$ 0.5 per pair based on contemporaneous exports. The Commissioner of Customs (Appeals) confirmed this decision, emphasizing the importance of FOB value for DEPB credit and the need to prevent over-inflation of values to misuse export promotion schemes. The appellants did not challenge the price set for similar goods by another exporter, M/s Beeta Exporters, which was lower at $0.55 per pair. The tribunal noted that the appellants failed to provide factual material to justify their higher declaration, relying on case law without supporting evidence. Consequently, the appeal was dismissed as the tribunal found no infirmity in the decision of the Commissioner of Customs (Appeals) regarding the valuation for DEPB credit.