TaxTMI 
TaxTMI 
2017 (2) TMI 188
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....d. However later the same consignment was examined and detained by DRI on 08.10.2002. The exporter did not approach the DRI for clearance of the said goods till 21.10.2002. On 21.10.2002 DRI conducted search of the premises of the appellant. During the statement of Shri Jayesh Bhavsar, whose premise was declared as address of the appellant, stated that he had obtained a IEC code at the suggestion of Shri Dinesh Koshti, director of Harmony Overseas (I) Ltd. He also said he was not aware as to how much consignments have been exported. He further informed that Shri Gopal Krishnan Iyer who was his late father s friend handled all export related activities of the appellant and profit was shared with him. A statement of Shri Gopal Krishnan Iyer w....
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....sed the declared value in case of two shipping bills filed under DEPB scheme. He also held that goods already exported under 13 past shipping bills were liable to confiscation under Section 113(i) of Customs Act, 1962. A penalty of Rs. 3 lakhs each was imposed on Shri Jayesh Bhavsar and Shri Gopal Krishnan Iyer under Section 114(iii) of the Customs Act. The amount of drawback which was recovered from the exporter from past consignment was appropriated against the drawback ordered to be recovered and penalties imposed on Shri Jayesh Bhavsar and Shri Gopal Krishnan Iyer. Aggrieved by the said order, Shri Gopal Krishnan Iyer and Shri Jayesh Bhavsar are in appeal before the Tribunal. 3. Ld. counsel for the appellant argued that the market su....
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....ent of Shri Jayesh Bhavsar were recorded on 22.10.2002 and of Shri Gopal Krishnan Iyer was recorded on 22.10.2002, 20.11.2002 and 25.11.2002. He argued that even in the last statement dated 25.11.2002 Shri Gopal Krishnan Iyer had admitted to over valuation in respect of all the past consignments as well. 5. We have gone through the rival submissions. We find that the ld. counsel has primarily challenged the method adopted for obtaining the market value of the goods. The principle argument has been that it has not been done in their presence or in the presence of any panchas. No detail description of the product is mentioned in the two reports relied upon by DRI in respect of the wholesale price of the goods. Admittedly, the value of garm....
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....d that it is not the true sale consideration. In some cases, this hypothetical contention may be right. However this would depend upon facts and circumstances as well as evidence on record in each case. If the goods are easily available in the market, then it would be difficult to arrive at the conclusion that a foreign buyer - a prudent businessman would pay ten times more than the prevailing market price of readymade clothes, particularly, in the days where information is easily available through internet or various other sources. In any case, when margin of profit appears, on the face of it, unreasonable, it is for the exporter to establish that it was true export value stated in the shipping bill. Section 14 itself contemplates that the....