TaxTMI 
TaxTMI 
2006 (9) TMI 404
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....redit at the rate of 14% under the Serial No. 60 of product group code 89 of DEPB schedule was claimed by the appellant. The DEBP credit involved was Rs. 4,11,876/-. The declared value appeared to be rather high. Therefore, the department conducted verification and it was found that the market value of the garments could not exceed Rs. 407- per piece. Consequently, a Show Cause Notice was issued to the appellants to show cause why the FOB value should not be fixed at the rate of Rs. 407- per piece for DEPB purposes? A proposal was made to hold the impugned goods liable for confiscation under Section 113(d) and 113 (i) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trace (Development & Regulation) Act, 1992. Penalties were le....
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....ave not been furnished to the appellants. (vi) Though a request was made to cross-examine the concerned person in the office of M/s. Rajdhani Knitters, Tirupur, he was not made available for cross-examination during the personal hearing. Hence, the impugned order is to be set aside for violation of principles of natural justice. (vii) The values declared by the appellant are true and correct. It is not proved by the department with sufficient documentary evidence that the values declared are as a result of any unhealthy negotiations between the exporter and the consignee abroad. (viii) The appellant had realised the foreign exchange, which is the pivotal component of the DEPB scheme. (ix) The learne....
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....rom the consignments for verification of market value. Since the goods originated from Tirupur, the representative samples were sent to Customs Intelligence Unit, Coimbatore for verification of the market value in respect of the same. The CIU, Coimbatore after investigation informed that the value of the garments may not exceed Rs. 40/- per piece. After this process, summons was issued to exporter to gather more evidence. Shri Sanjay Babu, Manager of the appellant unit appeared on 2-8-2004 and a statement under Section 108 of the Customs Act was recorded from him. He stated that the cotton T-shirts covered by the two shipping bills were manufactured by their factory at Tirupur. He was shown the samples drawn from the two consignment and he ....
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....). M/s. Flow Tex India informed that they receive the grey fabrics from the appellant and send the same to the job workers for dyeing and other processes. However, they informed that they were not maintaining any records for payment made to the job workers. They stated that the dyeing charges of Rs. 159/- per kg appeared abnormal. Therefore, the CIU reported that there was no correlation between the yarn purchased from M/s. Lakshmi Yarns and fabrics processed by M/s. Flow Tex India and used in the manufacture of T-shirts under investigations. Thereafter, the samples were sent to Textiles Committee, Kannur for ascertaining the nature and composition as well as hosiery counts of the fabrics/yarn. The Textile Committee tested the samples and a....
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....export would be only a cover up or a device to transfer money. Therefore, the argument that foreign exchange has been realized and therefore, no action should be taken under the Customs Act for over-valuation is not acceptable. It would be in fitness of things, to reproduce the observations of the Apex Court in Para 18 of the above-mentioned decision. "18. Hence, in cases where the export value is not correctly stated but there is international (sic) over-invoicing for some other purpose, that is to say not mentioning true sale consideration of the goods, then it would amount to violation of the conditions for import/export of the goods. The purpose may be money laundering or some other purpose, but it would certainly amount to ille....