RECO INDUSTRIES Vs. COMMISSIONER OF CUSTOMS, NEW

JUDGEMENT

(1.) THE appellant is an exporter of readymade garments. They filed six shipping bills all dated 31.12.98 for export of 4339 pieces of assorted ladies readymade garments. Export value of the goods was declared at around Rs.19 lacs. The goods in question are eligible to drawback at 18%. Examination of the goods gave rise to suspicion that the goods had been over -invoiced in order to claim higher drawback. Investigations were, therefore, conducted by the customs authorities. They culminated in the impugned order, which ordered confiscation of the goods under section 113(ii) of the Customs Act, 1962 and imposition of a penalty of Rs. 15,000. It was also ordered that the goods cold be redeemed on payment of fine of Rs.70,000 and drawback on the consignment shall be paid based on the market value ascertained during the enquiry and not at the declared export value. Appellant challenges this impugned order.

(2.) IT has been submitted by the appellant that the export prices declared by them were actual prices at which the goods were sold. They have also submitted that the market enquiries conducted by the investigating authority and the market price ascertained had no basis at all. It is also their grievance that their case has been taken for investigation contrary to the guidelines issued by the Department of Revenue under its Circular No. 74/2000 dated 7th September, 2000. It has been pointed out that the circular had specifically directed that market enquiry should be ordered only in such cases where prima facie the restrictions placed by Section 76(1)(b) would be violated.

(3.) THE impugned order had been passed on the basis that the export value was much higher than the market value and that the appellant had confessed over -invoicing of the goods. As the confessional statement and market enquiries were not available in the appeal file, we directed the Learned Departmental Representative to obtain case records for our perusal. The case records have accordingly been made available today and we have perused them.