MARVELOUS CREATIONS Vs. C.C.

JUDGEMENT

(1.) HEARD both sides.

(2.) APPELLANT filed this appeal against the order in appeal passed by the Commissioner (Appeals). The appellants are basically challenging the imposition of penalty of Rs. 2 lakh under Section 114 of the Customs Act, 1962. The brief facts of the case are that appellants filed 2 Shipping Bills for export of Cotton T -Shirts and declaring the Unit price at the rate of Rs. 260/ - per piece. Initially, the goods were assessed. However, subsequently, the goods were re -examined and Market Enquiry was conducted and as per the market enquiry market price of the T -Shirt is only Rs. 29 per piece. The adjudicating authority after relying upon the market enquiry held that the market value of the goods is only Rs. 8,78,178/ - that is less than the draw back claim and disallowed the claim of drawback. The adjudicating authority also held that the consignments under question are also liable for confiscation and imposed penalty of Rs. 2 lakhs.

(3.) THE contention of the appellant is that they have purchased the T -Shirts at the rate of Rs. 250/ - per piece from M/s. PST Apparels and also produced the invoice to this effect. The contention is that as their foreign buyer agreed to buy the T -Shirts at the rate of Rs. 260/ - per piece and subsequently the goods were also to be export of provisional basis and they received sale price from the importer. The contention is that in these circumstances the impugned order disallowing the drawback and the imposition of penalties not sustainable. The appellants relied upon the decision of the Tribunal in Page 498 the case of Brooks International v. CC, ICD, Tughlakabad, New Delhi to submit that in case of export as the goods are not prohibited the goods, hence are not liable for confiscation.