LAWS(CE)-2006-9-69

ABHISHEK EXPORTS Vs. COMMISSIONER OF CUSTOMS, COCHIN

Decided On September 04, 2006
Abhishek Exports Appellant
V/S
COMMISSIONER OF CUSTOMS, COCHIN Respondents

JUDGEMENT

(1.) THIS appeal has been filed against Order -in -Original No.06/2006 dated 14 -3 -2006 passed by the Commissioner of Customs, Cochin.

(2.) THE appellant filed two shipping bills for export of 15840 pieces of knitted T -shirts with a declared FOB value of Rs. 29,41,974/ -. The DEPB credit at the rate of 14% under the Serial No. 60 of product 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 and Regulation) Act, 1992. Penalties were levied under Section 114 (i) and 114 (iii) of the Customs Act, ibid. After following the prescribed procedure, the Commissioner passed the impugned order. He held that the impugned goods are liable for confiscation as proposed in the Show Cause Notice. He ordered final assessment of the shipping bills at a value of Rs. 40/ - per piece for DEPB purposes. He imposed a penalty of Rs. 3 lakhs under Section 114 of the Customs Act, 1962. The appellants strongly challenge the findings of the Commissioner.

(3.) SHRI A.K. Jayaraj, learned Advocate appeared for the appellants and Shri K. S. Reddy, learned JDR appeared for the Revenue. The learned Advocate urged the following point.