CRYSTAL EXPORTS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS is an appeal against Order -in -Original No. 5/98 dt. 21.4.99 passed by Commissioner of Customs wherein he has confiscated the goods sought to be exported and allowed redemption on payment of fine of Rs. 20,000. He has confiscated the goods imported in excess of what was declared by the importer and allowed redemption on payment of fine of Rs. 1,50,000 and payment of duty of Rs. 10,61,731 alongwith interest w.e.f. 28.4.98. He has imposed penalty of Rs. 10,61,731 under Section 114A of the Customs Act as well as Rs. 50,000 under Section 114(i) of the Customs Act, 1962.

(2.) HEARD Shri S.S. Radhakrishnan, Ld. Advocate for appellants and Shri S. Sudarsan, Ld. DR. Ld. Advocate submits that the facts of the case briefly are that appellants had submitted for export of certain goods, which on examination were found to differ in quantity that what was declared in the Shipping Bills. The importer -appellant is a 100% EoU. In view of the shortages noticed, the Officers of DRI visited the unit and conducted stock taking of the goods available. The result thereof was that the Mahazar found specified excess of goods than what was accounted for. Ld. Advocate submits that since the appellants disputed the genuineness of these stock taking of highly technical items therefore the department allowed re -stock -taking to be done by technical inspection agency namely M/s. SGS India Ltd.

(3.) THE results of these inspections showed a different set of items which were found in excess what was accounted for. Ld. Advocate further submits that these goods found in excess had been imported earlier as this 100% EOU works only on job work basis wherein goods are imported from foreign buyer, but processed and then re -exported to the same foreign buyer. During this entire period, the goods belonged to the foreign buyer and there is no sale. Therefore, the order impugned has erred in taking the invoice value as the transaction value of these goods imported under Section 14 of the Customs Act because there was no transaction value, there being no sale.