TaxTMI 
TaxTMI 
2025 (7) TMI 1468
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.... the goods exported under 21 Shipping Bills by M/s Mahir Fashions(P) Ltd. under drawback scheme under section 14 of the Customs Act, 1962 and re-determine the value at Rs. 3,26,34,855/- (rupees three crores twenty six lakhs thirty four thousand eight hundred and fifty five only) as per details contained in Annexure- '1' to the SCN; (II) I order recovery of excess drawback availed fraudulently by Mis Mahir Fashions (P) Ltd amounting to Rs. 42,72,671/- (rupees forty two lakhs seventy two thousand six hundred and seventy one only) as detailed in Annexure-1 to the SCN under Rules 16 of the Customs and Central Excise Duties (Drawback) Rules, 1995 read with the provisions of Section 75(1) of the Customs Act, 1962 along with interest thereon under Section 75A (2) of the Customs Act, 1962; (III) I also order for appropriation of the amount of Rs. 31,00,000/- already paid by M/s. Mahir Fashions (P) Ltd. during investigations against the demand confirmed at para (II) above; (IV) I order to confiscate the goods exported by M/s Mahir Fashions (P) Ltd shown under the shipping bills as detailed in Annexure-1 to the SCN under the provisions of Section 113(i) of ....
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....lmas Creations, ICD, Tughlakabad (I) I reject the declared invoice value of Rs. 2,58,71,164/- (rupces two crores fifty eight lakhs seventy one thousand one hundred and sixty four only) of the goods exported under 04 Shipping Bills by M/s Almas Creations under DEPB scheme under Section 14 of the Customs Act, 1962 and re-determine the value at Rs. 1,05,32,151/- (rupees one crore five lakhs thirty two thousand one hundred and fifty one only) as per details contained in Annexure- '2' to the SCN; (II) I order recovery of custom duty equivalent to the excess DEPB credit availed fraudulently by M/s Almas Creations amounting to Rs. 12,35,605/- (rupees twelve lakhs thirty five thousand six hundred and five only) as detailed in Annexure-2 to the SCN under Section 28(1) of the Customs Act, 1962 read with the relevant provisions of Foreign Trade Policy and Notification No. 34/97-Cus. dated 7.4.1997, along with interest thereon under Section 28AB of the Customs Act, 1962;. (III) I order to confiscate the goods exported under the DEPB scheme by M/s Almas Creations and shown under the shipping bills as detailed in Annexure-2 to the SCN under the provisions of Se....
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....of the Customs Act, 1962. (E) In respect of M/s Naaz Impex, ICD, Tughlakabad (I) I reject the declared invoice value of Rs. 2,78,45,001/- (rupees two crores seventy eight lakhs forty five thousand and one only) of the goods exported under 05 Shipping Bills by M/s Naaz Impex under Drawback scheme under Section 14 of the Customs Act, 1962 and re-determine the value as Rs. 1,13,35,700/- (rupees one crore thirteen lakhs thirty five thousand and seven hundred only)as per details contained in Annexure- 3 to fac SCN; (II) I order recovery of excess drawback availed fraudulently by M/s Naaz Impex amounting to Rs. 11,53,995/- (rupees eleven lakhs fifty three thousand nine hundred and ninety five only) as detailed in Annexure-3 to the SCN under Rules 16 of the Customs and Central Excise Duties (Drawback) Rules, 1995 read with the provisions of Section 75(1) of the Customs Act, 1962 along with interest thereon under Section 75A (2) of the Customs Act, 1962; (III) I order to confiscate the goods exported by M/s Naaz Impex shown under the shipping bills as detailed in Annexure-3 to the SCN under the provisions of Section 113(i) of the Customs Act, 1962. Since....
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....he Customs Act, 1962. (G) In respect of M/s Naaz Impex, Air Cargo Exports, IGI Airport, New Delhi (I) I reject the declared invoice value of Rs. 59,31,353/- (rupees fifty nine lakhs thirty thousand three hundred and fifty three only) of the goods exported under shipping bill no. 5215524 dt 25.06.2004 by M/s Naaz Impex under DEPB scheme under Section 14 of the Customs Act, 1962 and re-determine the value as Rs. 24,14,654/- (rupees twenty four lakhs fourteen thousand six hundred and fifty four only) as per details contained in Annexure- '3' to the SCN; (II) I order recovery of custom duty equivalent to the excess DEPB credit availed fraudulently by M/s Naaz Impex amounting to Rs. 3,21,974/- (rupees three lakhs twenty one thousand nine hundred and seventy four only) as detailed in Annexure-3 to the SCN under Section 28(1) of the Customs Act, 1962 read with the relevant provisions d Foreign Trade Policy and Notification No. 34/97-Cus. dated 07.04.1997 along with interest thereon under Section 28AB of the Customs Act, 1962; (III) I order to confiscate the goods exported under the DEPB scheme by M/s Naaz Impex mail shown under the shipping bill....
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....etermined the FOB values under section 14 of the Customs Act, 1962 read with Customs Valuation (Determination of Value of Export Goods) 2007 [Valuation Rules]. Consequently, it ordered recovery of excess drawback and DEPB benefits said to have been availed by over-valuation of exports. It also held that the exported goods were liable for confiscation under section 113 of the Act and imposed redemption fine in lieu of confiscation and further imposed penalties under section 114 of the Act. 4. Several submissions were made by the learned counsel for the appellants and the learned authorized representative appearing for the Revenue. Before going into those submissions, it must first be examined if the Commissioner or any other customs officer has the power to re-determine the FOB value of exported goods since the entire case of the department is based on such re-determination. 5. In order to decide if the FOB value could be re-determined by the officer, the meaning of FOB value must be examined. FOB value has not been defined under Customs Act,1962 [Customs Act] or under Foreign Trade (Development and Regulations) Act 1992 [FTDR Act]. However, it is universally understood becaus....
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....on, or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale subject to such other conditions as may be specified in the rules made in this behalf: Provided that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf: Provided further that the rules made in this behalf may provide for,- (i) the circumstances in which the buyer and the seller shall be deemed to be related; (ii) the manner of determination of value in respect of goods when there is no sale, or the buyer and the seller are related, or price is not the sole consideration for the sale or in any other case; (iii) the manner of acceptance or rejection of value declared b....
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....iable on the basis of the quantity, weight, volume, measurement or other specifics of such goods; (e) the origin of such goods determined in accordance with the provisions of the Customs Tariff Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is affected by the origin of such goods; (f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods,and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;" 9. A combined reading of section 14 and section 2(2) of the Act shows that the proper officer can reject the transaction value as the assessable value and re-determine it following certain other methods as per the Valuation Rules. 10. What needs to be noted is that there is a clear distinction between the transaction value (which cannot be altered by any stranger to the contract) and the value under section 14 and the Valuation Rules (which can be determined by the proper officer). If the proper officer rejects the transaction value and determines the assessable value through some other methods such as, the value of contemp....
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....ons of this order are as follows: "17. We find that the dispute in this case is regarding export incentives in the form of drawback, MEIS and ROSL. The suspicion of the department is that the exporters had overvalued their goods so as to claim excess export benefits. The department wants the FOB values to be re-determined and accordingly the export incentives to be recomputed. 18. De hors the facts of the case, the fundamental questions which need to be examined and answered are: a) What is the meaning of FOB value of the goods and who decides it? b) Does the Joint Commissioner, Commissioner (Appeals) or any other officer of Customs have the power to re-determine the FOB value of the goods and if so, under what legal provisions? c) If the assessable value of the export goods is re-determined under the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 by the proper officer, will it also change the FOB value? d) If the export incentives are based on FOB value, does any Customs officer have the power under the law to order that the export benefits shall instead be paid on the basis of some other value determine....