RIOBEN INTERNATIONAL Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THESE appeals have been filed against the Order -in -Appeal No. 213/2003 -Cus., dated 20 -5 -2003, passed by the Commissioner of ustoms (Appeals), Bangalore.

(2.) THE brief facts of the are as follows : - The Revenue proceeded against the appellants alleging that the appellants firm had entered for export, a consignment of 1500 piece of Quartz Analog Watches under DEPB Scheme, prescribed under Para 7.25 of the Exim Policy 1997 -2002 by over -invoicing the goods to claim undue benefit under the said scheme. The consignment was detained at Export Terminal of Air Cargo Complex. Certain incriminating documents were seized from the premises of the appellants. The main charges against the appellants are that the Quarts Analog Watches were purchased at Rs. 73/ - per piece but the value declared to the Customs was US $ 32.50 per piece. The expert opinion of the M/s. HMT Ltd. fixes the value of the watches at Rs. 230/ - per piece. Hence it was alleged that the inflated value had been given for getting undue benefit under the DEPB Scheme. The Original Authority in his order dated 3 -4 -2001 rejected the value of US $ 32.50 per piece and fixed the value at Rs. 230/ - per piece for the purpose of DEPB credit. Further, he imposed a penalty of Rs. 5,00,000/ - on M/s. Rioben International, Bangalore under Section 114 of Customs Act, 1962. He imposed a penalty of Rs. 2,00,000/ - on Shri G. Vimal Bhandari of M/s. Marudhar Enterprises under Section 114 of the Customs Act, 1962. The appellants approached the Commissioner (Appeals) who upheld the Order -in -Original. The appellants are aggrieved over the impugned Order -in -Appeal dated 20 -5 -2003. Hence they have come before the Tribunal for relief.

(3.) SHRI Laxminarayana, learned Advocate appeared for the appellants and Shri Ganesh Havanur, learned SDR appeared for the Revenue. The learned Advocate advanced the following arguments :