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TMI Blog2006 (9) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... ct group code 89 of DEPB schedule was claimed by the appellant. The DEBP credit involved was Rs. 4,11,876/-. The declared value appeared to be rather high. Therefore, the department conducted verification and it was found that the market value of the garments could not exceed Rs. 407- per piece. Consequently, a Show Cause Notice was issued to the appellants to show cause why the FOB value should not be fixed at the rate of Rs. 407- per piece for DEPB purposes? A proposal was made to hold the impugned goods liable for confiscation under Section 113(d) and 113 (i) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trace (Development Regulation) Act, 1992. Penalties were levied under Section 114 (i) and 114 (iii) of the Customs A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Tirupur, he was not made available for cross-examination during the personal hearing. Hence, the impugned order is to be set aside for violation of principles of natural justice. (vii) The values declared by the appellant are true and correct. It is not proved by the department with sufficient documentary evidence that the values declared are as a result of any unhealthy negotiations between the exporter and the consignee abroad. (viii) The appellant had realised the foreign exchange, which is the pivotal component of the DEPB scheme. (ix) The learned advocate relied on the following decisions: (a) Sanjay Kapoor v. CC (Import), Mumbai - 2004 (173) E.L.T. 198 (Tri.-Mumbai). (b) Akshay Exports Indus. v. CC (EP), Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of the garments may not exceed Rs. 40/- per piece. After this process, summons was issued to exporter to gather more evidence. Shri Sanjay Babu, Manager of the appellant unit appeared on 2-8-2004 and a statement under Section 108 of the Customs Act was recorded from him. He stated that the cotton T-shirts covered by the two shipping bills were manufactured by their factory at Tirupur. He was shown the samples drawn from the two consignment and he confirmed that they were the samples from the goods exported. Then he stated that he would be submitting the costing sheet, copy of the bank realization certificate and invoices for the purchase of grey fabrics from M/s. Lakshmi Yarns and bill for dyeing and compacting raised by M/s. Flow Tex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 159/- per kg appeared abnormal. Therefore, the CIU reported that there was no correlation between the yarn purchased from M/s. Lakshmi Yarns and fabrics processed by M/s. Flow Tex India and used in the manufacture of T-shirts under investigations. Thereafter, the samples were sent to Textiles Committee, Kannur for ascertaining the nature and composition as well as hosiery counts of the fabrics/yarn. The Textile Committee tested the samples and as per the test reports, the count of the yarn was 18.6s and 18.3s in one shipping bill and 18.3s in respect of another shipping bill. From the above, the department came to the conclusion that the costing sheet and the invoices for the purchase of fabrics submitted by the Manager indicating a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex Court in Para 18 of the above-mentioned decision. 18. Hence, in cases where the export value is not correctly stated but there is international (sic) over-invoicing for some other purpose, that is to say not mentioning true sale consideration of the goods, then it would amount to violation of the conditions for import/export of the goods. The purpose may be money laundering or some other purpose, but it would certainly amount to illegal/unauthorized money transaction. In any case, over-invoicing of the export goods would result in illegal/irregular transactions in foreign currency. 6.2 In the present case, it is very clear from the investigations by the departmental authorities that the appellant had not declared the correct value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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