9911796707
TMI Blog2007 (5) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... dent holding that the guidelines contained in Circular No. 69/97-Cus. dated 8-12-1997 issued by the Government of India, Ministry of Finance, Department of Revenue, New Delhi, as it has not succeeded in making out a case against respondent as the Present Market Value (in short the 'PMV')declared is not more than 150% of the AR 4 value. Accordingly the order passed by the Commissioner of Customs (Post) Kolkatta was set aside. 2. Background facts in a nutshell are as follows: 3. The Respondent Company which is engaged in the business of computerized printing exported for the first time consignments of steel balls of a total declared value at Rs. 14.63 crores to one M/s. Ria Multiple Enterprises of Malaysia under Duty Entitlement Pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the agreement of precision quality, quality control checking by an expert, are all after thought having no consistency and no evidence whatsoever could be produced in this regard; (ix) Neither the export nor the foreign buyer or even the local suppliers are regular dealers of Steel balls in as much neither the exporter nor the local suppliers could produce any piece of evidence of sale of such Steel Balls: to any other party in India or abroad excepting the production of evidence of sale by M/s. S.F. Forging to one M/s. Arlun Automobile, that too for the purpose of export under DEPB scheme. (x) Surprisingly the suppliers had received only about 1/4th or 1/3rd of the so called sale value amount but did not receive huge sum of money wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal learned counsel for the appellant submitted that Sri Parasmal Lodha who was the Director of the respondent-Company had clearly admitted about the following aspects: (i) The Company's main line of business is computerized printing. (ii) The benefit of DEPB scheme attracted to venture into steel balls export and also took the risk of exporting to the party on credit which is a big risk. (iii) The payment was to be made within 60 days and the payments were delayed by over 6-18 months. (iv) 90% of the payment was already received and the balance was to be cleared by 15-4-01 i.e. after the enquiry started in the year 2000. (v) He does not have any idea about the international price of steel balls. (vi) He received major p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the PMV and the FOB Value have been suitably followed by DRI. Nowhere in the above mentioned 3 circulars issued by the Board, it is stated that the PMV would be challenged/rejected/modified on the basis of evidence of contemporaneous export. It is to be done on the basis of the findings of the market enquiry only. I, therefore, accept the proposal of ascertaining the PMV and the FOB value as given in the show cause notice." 10. The Commissioner accordingly inter alia held as follows: "The subject goods exported under claim of DEPB credit did not correspond to the declaration made regarding the same on the shipping bills in respect of the value and DEPB benefit, since it was declared on the shipping bills that the benefit under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue has not succeeded in making out a case against the Appellants as the PMV declared is not more than 150% of AR4 value. Accordingly, we set aside the impugned order and allow all the appeals". 14. According to appellant, the Tribunal has failed to note that the finding recorded by the Commissioner were based on the evidence tendered by the company from which it can be clearly inferred that there has been a misdeclaration and misstatement only with the object to boost the value to get higher DEPB benefit. The entire transaction is vitiated by misstatement, misdeclaration and suppression of material facts which has not been considered by the Tribunal. 15. It is pointed out by the learned counsel for the appellant that absolutely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ministry of Finance in the Circular No. 69/97. 19. It is submitted in almost identical case in Commissioner of Custom, New Custom House, Mumbai v. Vishal Exports Overseas Ltd. [2007 (209) E.L.T. 331 (S.C.)], this Court has dismissed the appeal filed by the Revenue. 1 19. We find that the Commissioner had in detail referred to various aspects to conclude about over-invoicing. The applicability of Circular No. 69/97 would depend upon the factual scenario of a particular case. 20. In the instant case, what the Tribunal appears to have done is to refer to the arguments of parties and then came to abrupt conclusions without-discussing in detail as to how the conclusions of the Commissioner were erroneous. That having not been done ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
