TaxTMI 
TaxTMI 
2022 (12) TMI 1250
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....2018 passed by the Additional Commissioner rejecting the declared value of the goods in the 13 shipping bills and redetermining the same has been set aside and the appeal has been allowed. 2. M/s Bha Exim Pvt. Ltd. [the respondent] filed 13 shipping bills, each dated 07.09.2017, for export of Polyester Fancy Pray Mat (size 70cm x 115cm), Polyester Fancy Big Hand Bag with Shoulder Strap claiming drawback under the Customs, Central Excise and Service Tax Drawback Rules, 1995 [the 1995 Drawback Rules]. On examination of the impugned goods it was noticed that the goods were mis-declared and overvalued. Accordingly, the goods were seized under section 110 of the Customs Act, 1962 [the Customs Act] on the belief that the same were liable to conf....
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....eproduced below: "19. In this case, the following issues are to be decided: (i) re-determination of FOB value of the export goods for drawback purpose, and (ii) whether the exporter is liable to penalty u/s. 114 of the Customs Act, 1962. 19.1 As regards, the first issue i.e. to re-determine the FOB value of the export goods for drawback purpose, I am taking lowest market value per piece for Polyester Fancy Pray Mat @ 618 per piece against exported price of Rs. 762/- per Pcs & Rs. 952/- (15 USD) per Sq. Mtr., Polyester Fancy Pray Mat @ Rs. 665/- per piece exported at Rs. 860/- per Pcs. & Rs. 1075/- (16.95 USD) per Sq. Mtr., Polyester Fancy Big Hand Bag @ Rs. 313/- per piece having size 37cm x 33m both exported @ Rs. 428/- (.75 US....
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....ho by order dated 12.03.2020, allowed the appeal and set aside the order dated 12.03.2018 passed by the adjudicating authority. The relevant portion of the order passed by the Commissioner (Appeals) is reproduced below: "5.4.2 ***** Thus, the assessing officer has to first have cogent reasons to reject the declared value, convey the same to the exporter and ask further information and then decide to reject or accept the declared value. In this context, it is also noted that Rule 8 of CVR 2007 is worded on similar lines as Rule 12 of Customs Valuation (Determination of Price of Imported Goods) Rules, 2007 which applies to imported goods. Hon‟ble Supreme Court had laid down detailed guidelines regarding requirement of Rule 12 (Sup....
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.... The importer has to be given opportunity of hearing before the proper officer finally decides the transactional value in terms of Rules 4 to 9 of the 2007 Rules. These guidelines are squarely applicable to Rule 8 of CVR 2007. ***** Thus rejection of declared value and redetermination of value of export goods has to be a two steps process. In light of this background, I proceed to examine whether the impugned order rejecting the declared value of export goods & re- determining the same on the basis of market enquiry alone is correct & legal? 5.5 Rejection of declared value:- 5.5.1 The impugned order notes (Para 2) that during examination, the export goods appeared to be over-valued and accordingly the same were seized. The ....
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....o reject the declared value. 5.5.3 There is not a whisper in the impugned order that the declared price is not the the Customs Act, 1962. No evidence or finding has been given that the buyer & the Appellant were related or there was any cash flow or money dealing between them which could have affected the transaction between them in respect of export goods. ***** 5.5.4 Thus I find that rejection of declared value under Rule 8 of CVR was not proper & legal. ***** 5.6.3 Thus redetermination of declared value solely on ground of market enquiry is not proper and legal and declared value need to be accepted as correct." (emphasis supplied) 6. Ms. Jaya Kumari, learned authorized representative appearing for the Department, submi....