9911796707
TMI Blog2023 (8) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of DEPB Scheme granted under FTP. The exports of the Appellant to Bangladesh were required to be certified by certifying Agency SGS India Pvt. Ltd. The DRI officials have investigated the case and have found that SGS India Ltd. have tested the consignment in respect of one invoice. The Invoice available with SGS India was indicating the entire quantity which was shown in 12 Shipping Bills individually and separately. The value shown in the invoice submitted to SGS, was much lesser than the values as shown in the ultimate 12 Invoices and Bill of Exports used by the the Appellant. Show Cause Notice was issued on the ground that the value of the 12 consignments was Rs 19,55,487/- as per the Report of SGS, whereas the Appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is taking the stand that SGS has given them Report dated 24/02/2013 which was not supplied to them at any point of time. He submits that the Department has taken the stand that the Appellant has enhanced the value by 330% in the Invoices for the Exported Consignment to Bangladesh. He submits that the Department has failed to address the issue when the Appellants have submitted that the purchase price of fabric itself was between Rs. 85 to 95 per meter at that particular point of time. If the Department has checked the purchase price vis-a-vis the price charged by the Appellant for their export consignment, they could have easily come to a conclusion that the Appellant was operating with a very small margin. If the value taken by the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd BRCs were submitted to the Department. 5. The Learned Advocate also relies on the case law of CCE, New Customs House, Mumbai Vs. Vishal Exports Overseas Ltd.-2007 (209) E.L.T. 331 (S.C.). He submits that in this case, the Supreme Court has held when other evidence in the form of proper bank realization statement and purchase details have been brought in by the party, the same cannot be ignored by the Department when they are trying the enhance the value of the exported consignment by 450%. He submits that the case law is squarely covered in their favour. Accordingly, the Learned Advocate prays that the present Appeals may be allowed. 6. The Learned AR reiterates the findings of the lower authorities. He further submits that the Invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and every export Invoice and Bill of Exports, the Appellant has been able to get the full realization from the overseas importer, in foreign currency and the same has been converted into Indian rupees by the receiving bank in India. The very fact that the overseas importer has accepted the value cited by the Appellant in the invoices and has honored the payment and has made the full payment, would show that he does not treat that the value of the imported consignment as inflated or overvalued. The data towards the purchase rate of such fabric in India has been provided by the Appellant to be at Rs. 85 to 95 per Meter in India. The Department has not made any effort to verify as to what was the purchase price in India for such fabric. When t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the export price could not be as high as Rs. 157/- (450%) and that it was unlikely that there would be such a vast variation between the domestic price and export price acceptable in the competitive export market. By making his own calculations, the FOB price was computed and fixed at Rs. 80/- per piece in place of Rs. 157/- per piece by the Assistant Commissioner. It was further ordered that the assessee would be entitled to DEPB credit on the basis of the FOB price of Rs. 80/- per piece and not at the sale price. Holding the declared FOB price of Rs. 157/- per piece or US $3.40 per piece a mis-declaration, the Assistant Commissioner held that the goods were liable to be confiscated and the penalty under Section 114 of the Customs Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the purchase cost given by the Appellant. The realized price and the purchase price cited by the Appellant more or less match giving no scope to over-value the consignment, much less over-value it by 330%. The Adjudicating Authority has also not considered the details of BRC submitted by the Appellant to the effect that they have fully realized the value of the export invoices from the overseas importer. The case law of Vishal Exports Overseas Ltd. cited by the Appellant is squarely applicable to the facts of the present case.
11. Accordingly, we set aside the impugned order and allow the Appeals filed by the Appellants with consequential relief, if any, as per law.
(Pronounced in the open court on 18/08/2023) X X X X Extracts X X X X X X X X Extracts X X X X
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