2001 (6) TMI 773

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....einafter referred to as the 'Act'). The allegations levelled against the appellants concerned fraudulently over invoicing the 205000 Compact Disc (CD) ROMs for availing inadmissible higher credit under the Duty Entitlement Pass Book (DEPB) Scheme, in violation of the provisions of Section 18(1)(a) of the Foreign Exchange Regulations Act, 1973, read with Section 11 of the Act, Section 11 of the Foreign Trade (Development & Regulation) Act, 1992 and Rule 11 of the Foreign Trade (Regulation) Rules, 1993. Among other allegations, it was alleged in the show cause notice dated 2-11-99 that some of the items entered for export were unsalable for non-technical fault of CD themselves, and in some cases, the goods in question were sub-standard/pirate....

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....not been duly considered. The goods were with the Customs. The financial hardship was also pleaded. He referred to the following decisions :- (1)     Collector of Customs, Calcutta v. Lexus Exports Pvt. Ltd. - 1994 (69) E.L.T. 228 (Calcutta). (2)     Shilpi Exports v. Collector of Customs, Calcutta - 1996 (83) E.L.T. 302 (Tribunal). In reply, Shri Mewa Singh, SDR submitted that it was a clear case of over-valuation with mala fide intention for getting extra export benefits. The transactions were not genuine and mala fide intention was obvious, and referred to the discussion at page 20 of the impugned order-in-original. He submitted that it has been held by the Tribunal's Larger Bench decision....

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....ail DEPB amount in an un-lawful manner in excess of actual. 5. The appellants have contended that the export price could not be challenged on the basis of costing; the price of Rs. 750 per piece was genuine; the foreign buyers were not fictitious; the documents drawn were not fake; earlier consignments have been cleared by their suppliers and the export proceeds have been received. It has also been submitted that the goods in question were in good condition and were saleable. 6. Presently, we are concerned with the disposal of the stay application. However, we note that in their communication dated 11-9-2000 the appellants had conveyed that the buyer was prepare to accept the consignment at reduced price if the shipment coul....