2002 (6) TMI 73

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.... the market value of the goods was declared at Rs. 400 per piece. The declaration of market value was significant as the export was under DEPB Scheme. Under that scheme the exporter would be entitled to credit at the rate of 15% of the export price of the goods. However, that credit was subject to the cap that it could not exceed 50% of the market value of the goods. This is how the market value assumes significance. 2. The Customs Authorities doubted the market value declared, made their own enquiries and initiated proceedings against the appellant for misdeclaration of market value. Those proceedings culminated in the impugned order. Based on the evidence gathered during investigation, the Commissioner fixed the market value at Rs. 125....

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....ibed the goods as made from Mohini Yarn and had stated that the value varied from Rs. 100/- to Rs. 125/- per piece depending on the quality of the yarn. Shri Kamal Kant had stated that sample was woollen Paijama and estimated its cost at Rs. 125/- 150/- per piece. Ld. Counsel argued that these opinions inspired no confidence inasmuch as Shri Kamal could not even distinguish between woollen paijamas and leggings, while it is common knowledge that paijamas and leggings are very different products. According to the ld. Counsel the opinion of Shri Pankaj merited no better respect since he dealt with the product as made of Mohini Yarn while the goods in question were of mixed yarn. 3. Learned Counsel also pointed out that the investigation wa....

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.... to the directions contained in Circular No. 69/97, dated 8-12-97. The best evidence for commercial transactions is the documents and payments relating to the commercial transaction itself. The appellants had filed their purchase invoice for the export goods. The purchase was from the manufacturer of the goods. These circumstances made verification of price and other details of the transactions very easy. It is strange that authorities chose not to follow this trail. It would be worse, if they chose to suppress the results of that verification as alleged by the appellant. We do not want to go into that unhappy aspect of investigation any further. Suffice to say, in the absence of any evidence discrediting the price mentioned in the purchase....