TaxTMI 
TaxTMI 
2019 (4) TMI 1709
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be inordinately high, and to be taken up for investigation, the exports were allowed provisionally after drawing representative samples. The original authority confiscated the goods while allowing these to be redeemed on payment of fine of Rs. 3,00,000/- and the value thereof was re-determined at a fraction of the declared value with concomitant reduction of entitlement under Duty Entitlement Pass Book scheme. Besides ordering recovery of the excess benefit, penalty of Rs. 5,00,000/- was imposed on the importer and on M/s Narendra Industries of Rs. 5,00,000/-, the other appellant, under section 114 of Customs Act, 1962. 2. It is contended by Learned Counsel for appellants that M/s Narendra Industries was penalised without authority of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f redemption fine when the goods were not available for confiscation. Placing reliance on the decision of the Tribunal in Vrundavan Exports v. Commissioner of Customs (Ex), Mumbai [2005 (191) ELT 1036 (Tri-Mumbai), he contends that customs authorities were not competent to sit in judgement over the decision of Directorate General of Foreign Trade on entitlement to the privilege of the scheme. It is also his contention that there has been no misdeclaration of the value and that adoption of local market price from the persons who are not in the business of exports does not suffice to relieve the obligation to determine value under Customs Act, 1962. 4. Learned Authorised Representative placed reliance on the decision of Om Prakash Bhatia v.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty of resort to appraisal of value can arise only within the context of deviation from section 14(1) of Customs Act, 1962 and rules for valuation of exports was not in existence during the relevant period. There is no evidence on record to show that the appellant had not been in receipt of the amount transacted for the goods which could, then, have had a bearing on redetermining of transaction value. Reliance placed on ascertainment from local market does not in any way concord with the requirements of section 14 of Customs Act, 1962 which benchmarks time and place of exportation as critical to acceptance of a value. Furthermore, we find that the order restricting the entitlement to benefits of the scheme in the Foreign Trade Policy has bee....