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TMI Blog2007 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... s New Delhi Rs. 720/- pair Mahavir Transport Co. Gwalior 128/ 18-7-2003 Madhu Traders Gwalior New Delhi 37,24,000/- 29,20,000/- 18/ 6-7-2003 G.V. Overseas Traders New Delhi Rs.730/-Pair Mahavir Transport Co.Gwalior 129/ 18-7-2003 NaJh Enterprise New Delhi 35,37,800/- 27,60,000/- 13/ 18-6-2003 Sunderlal & Sons New Delhi Rs. 690/- Pair Pandit Transport Co.Gwalior 130/ 18-7-2003 Sai Trading Co.Gwalior New Delhi 35,37,800/- 28,00,000/- 18/ 15-7-2003 G.V. Overseas Traders New Delhi, Rs. 700/- Pair Pandit Transport Co.Gwalior The officers drew the samples of the shoes on suspicion that the FOB value (present market value) as declared by the exporter was incorrect and they seemed to be overvalued, in order to avail undue benefits of DEPB. On reason able suspicion and belief the officers detained the containers and converted it into seizure. The samples drawn from the containers were sent for ascertaining the present market value of the goods from the manufacturers of PVC Sports Shoes and it revealed that the FOB value as declared by the appellants was very high and overvalued. Further investigations into the case revealed that the exporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amateurs in the business. It is his submission that the present market value as declared by the appellants in the shipping bill matches with the FOB and does not require any reduction. As regards the confiscation, it is his submission that the value which was declared by the appellant being correct there is no question of any confiscation due to mis-declaration of value and consequent penalties imposed on the appellant are unwarranted. 4. The Ld. SDR, first answering the appeals of the appellant submits that the documents which was shown by the appellants as regards the purchases of this PVC sports shoes was totally fake. It is his submission that the suppliers name and address which was given by the appellant to the authorities have turned out to the incorrect and the said suppliers never manufactured the PVC sports shoes for export. It is his submission that the present market value as ascertained by the Revenue was correct and adjudicating authority has come to correct conclusion on the present market value. Since there is mis-declaration of the value for availing ineligible benefit of the DEPB, the penalties imposed on the appellants are correct and does not require any interf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Noticee's contention that the PMV ascertained was unfair, unrealistic and contrary to commercial dealings inasmuch as it fails to take in the account expenses incurred on various counts so as to make the goods marketable is incorrect. Therefore, Noticee's recall of case law Brooks International v. ICD Tuglakabad does not come to their aid, Market enquiries conducted as per CBEC's Circular were proper and have proved that the charges levelled against all the exporters in respect of over invoicing of PVC Sports Shoes are correct. In the export documents, the suppliers of shoes were shown to be M/s. A.V.G. Enterprises, M/s. G.V. Overseas Traders and M/s. Sunderlal & Sons and all were shown operating from New Delhi. The verification of these firms revealed that M/s. Sundarlal & Sons does not exist at all and is a fake firm. Shri Pankaj Punhani, Manager of M/s. A.V.G. Enterprises had deposed that he was not aware of sports shoes sales from his firm. Shri Vijay Gulati, Proprietor of M/s. A.V.G. Enterprises had deposed that the submissions of his manager Shri Pankaj Punhani were binding on him. In the personal hearing dated 16-4-2004 or otherwise Shri Vijay Gulati had not disclose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submission of the Ld. Advocate appearing on behalf of the respondents that once the goods have been exported resultant foreign exchange having been realized, the question of re-opening the assessment and deciding the over valuation in these cases does not arise. We find from the records that the appellants Om Trading Co., Madhu Traders, Sai Trading Co., and Nath Enterprises were floated by Shri Ramesh Gulati, who master minded the entire activity of over valuation of consignments for expert in order to avail the benefit of DEPB Scheme. The Ld. Adjudicating authority has held in his order-in-original that all the appellant/respondent firms never gave correct address and the addresses which were given could not be located. Further, we find that the Ld. Adjudicating authority has clearly come to the conclusion in respect of the very same appellant/respondent firms that they were indulging in over valuation of the PVC sports shoes. If that be so, the adjudicating authority should have looked into the over valuation of the automobile parts by the very same appellants/respondents, critically. Suffice to say, that the appellant/respondent firms having tasted blood by over valuing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon 'ble Supreme Court, we are of the view that, the Ld. Adjudicating authority, was in error, while dropping the charges of over valuation in respect of automobile parts. The appellants/respondents herein were continuing their activity of over valuation of the goods for export, is in itself a good and valid reason to open the case of overvaluation of the automobile parts already exported. It is also on record that the supplier of automobile parts, have denied, having supplied automobile parts to the appellants for export. It is also on record that the said suppliers of automobile parts did not have any facility of manufacturing automobile parts. On the face of such glaring evidence, the impugned order dropping the charges of over valuation of the automobile parts exported by the appellants/respondents is incorrect and requires to be set aside, we do so. 7. As regards the appeals filed by the Revenue on the non-imposition of penalties on the individual by the adjudicating authority, we find that all these persons were either Proprietor or Partner of the firms which were indicted by the authority in the over valuation of the export of PVC shoes. It is settled law that the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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