APEX EXPORTS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) HEARD both sides and perused the record.

(2.) THE appellants exported goods under 16 shipping bills at Kolkata. The goods were declared as Articles of Hosiery Cotton Industrial Liner Gloves. The export value of the gloves worked out to about Rs. 9.45 per pair. The shipping bills were under Drawback claim and Drawback of about Rs. 1.38 paise per pair was due to the appellant based on the export price. The Customs authorities issued show cause notice alleging that, according to the inquiry conducted by them, the market value of the gloves would be only around Rs. 3 per pair and that the appellant has misdeclared the value so as to fraudulently benefit in additional drawback amount. The appellant resisted the show cause notice, but in adjudication, the Commissioner upheld the charge of overvaluation, ordered the confiscation of the goods under Section 113H(1) and (2) of the Customs Act. Even though, the consignments had been allowed to be exported, the Commissioner imposed a redemption fine of Rs. 2 lakhs on the appellants and a penalty of Rs. 25,000/ -. It was also ordered that the drawback claim may be decided on the basis of the present market value. This appeal challenges that order.

(3.) THE learned DR has submitted that Erode is a reputed place for manufacture of hosiery and therefore, the authorities were justified in going by the verification report from there. He has stressed that value has been highly overstated (300%) so as to avail of undue drawback benefits.