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Issues:
Challenge to impugned order of confiscation and penalty under Customs Act, 1962 based on suspicion of over-invoicing for higher drawback. Appellant's contention of actual export prices, challenge to market enquiries, and violation of guidelines under Circular No. 74/2000. Absence of confessional statement and market enquiries in appeal file. Discrepancies in market values and export prices. Lack of credibility in market value opinions obtained. Limitation on customs authorities' enquiries under Section 76(1)(b) of Department of Revenue circular. Finding of no basis for value determination in adjudication order. Setting aside impugned order and granting full drawback at declared export prices. Analysis: The case involves an exporter of readymade garments challenging an impugned order of confiscation and penalty under the Customs Act, 1962, due to suspicion of over-invoicing for higher drawback. The appellant declared export prices as actual, disputing market enquiries and guideline violations under Circular No. 74/2000. Notably, confessional statements and market enquiries were absent in the appeal file, prompting a review of case records. Upon examination, discrepancies between market values and export prices were found to be minimal, undermining the conclusion of misdeclaration for fraud. Market value opinions obtained lacked credibility, with vague authorship and absence of expertise or reasoning, rendering them unreliable for adjudication purposes. Furthermore, the Department of Revenue circular limits customs authorities' enquiries to cases violating Section 76(1)(b) restrictions, which were not applicable here. The adjudication order's value determination was deemed baseless, as the investigation did not align with Department of Revenue guidelines, causing unintended difficulties for the appellant. Consequently, the impugned order was set aside entirely, with the appellants' export prices accepted for full drawback without restriction to market values. This decision allows for the appellant to receive the full permissible drawback at the declared export prices, resolving the dispute in favor of the appellant and granting consequential relief. In conclusion, the appeal was allowed based on the lack of basis for the impugned order's findings, the absence of credible market value opinions, and the violation of Department of Revenue guidelines, leading to the reversal of the decision and the restoration of the appellant's entitlement to full drawback at declared export prices.
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