2016 (11) TMI 1201 - AT - Customs

Valuation - mis-declaration of the description of export goods as well as the value thereof - DEPB benefit - duty drawback - Held that - Entire contention of Revenue is substantiated from the adjudication record itself and also from the market enquiry conducted in respect of the goods attempted to be exported. Appellant failed to discard allegation of Revenue without any cogent evidence - In view of the concurrent findings by the authorities below and evasive practice adopted by the appellant misdeclaring value of export to claim higher DEPB, there is no scope at all to grant relief to appellant - appeal dismissed.

Summary

Issues:
Allegations of misdeclaration and overvaluation of exported goods under DEPB and Drawback Schemes.

Analysis:
The case involved allegations against M/s. Fairdeal Impex for misdeclaration and overvaluation of goods exported under DEPB and Drawback Schemes. The investigation revealed discrepancies in the address of the exporter, non-response to summons, inflated purchase prices, misdeclaration of goods, and overvaluation of goods. The exporter failed to furnish true descriptions and values of the goods, misdeclaring to obtain higher benefits. The goods were found to be over-invoiced with the intention to claim higher credit under DEPB and excess drawback. The Revenue argued that the exporter contravened provisions of the Customs Act, 1962, the Foreign Trade Act, and Regulations, attracting penal actions and confiscation of goods.

The Revenue contended that M/s. Fairdeal Impex misdeclared goods and values to claim undue benefits, violating various trade laws. The exporter was directed to show cause regarding denial of DEPB benefits, restriction of DEPB credits, re-determination of FOB values, and potential confiscation of goods. The Revenue detailed the discrepancies in declared values versus actual values of exported goods, emphasizing the misdeclaration and overvaluation to claim higher benefits. The adjudicating authority found evidence of spurious goods being exported with inflated values, supporting the Revenue's contentions.

The Tribunal upheld the Revenue's findings, noting the lack of evidence to refute the allegations against M/s. Fairdeal Impex. The authorities' concurrent findings and the appellant's evasive practices in misdeclaring values for higher benefits led to the dismissal of the appeal. The Tribunal concluded that the appellant's actions in misdeclaring export values for higher DEPB benefits left no room for relief, affirming the lower authorities' decision.

In conclusion, the judgment upheld the allegations of misdeclaration and overvaluation of exported goods by M/s. Fairdeal Impex under DEPB and Drawback Schemes. The case highlighted the importance of compliance with trade laws and the consequences of misdeclaring values for pecuniary benefits. The dismissal of the appeal underscored the seriousness of such violations and the need for accurate declaration of goods and values in international trade transactions.