TaxTMI 
TaxTMI 
2004 (3) TMI 266
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....g firm produced sales contract at USD 6.50 per piece and purchase/procurement details of purchase at Rs 225/- per piece. The goods after examination were allowed to be exported as provisional shipment. Market enquiries were made by CIU officers at Colaba and at Fashion Street. While no panchnama was drawn for Colaba enquiry, a panchnama was drawn for Fashion Street enquiry. Based on their enquiry, a Show Cause Notice was issued alleging that the Present Market Value (hereinafter referred to as PMV) was Rs 12,96,000/- as against the declared PMV of Rs. 64,98,608/-. Therefore, DEPB credit as per para 7.36A of the Hand Book of Procedures 1997-2000 claimed by Rs 5,33,565/- in excess of DEPB entitlement. That was considered to be a contravention....
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....oreign Trade (Development and Regulations) Act, 1992 was not called to determine confiscation under Section 113(d) of the Customs Act and or penalty under Section 114(i). 3. The learned D.R. reiterates the findings of the Adjudicator. 4. After considering the submissions and the material, it is found - (a) After the denial of cross-examination of the shop keeper or and persons with whom the PMV enquiries conducted at 'Colaba' and at 'Fashion Street' by the officers, and relied upon to issue notice, the adjudicator has come to a finding PMV to the following effect : "32. ...I am not rejecting this price merely on the ground that his supplier happens to be his elder brother. I am also not rejecting this price merely on t....
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..../- per piece, by the adjudicator. The questioning of PMV declared is not established. (b) The claim under DEPB and the rate is to be determined by DGFT, and not by Customs was the view held by this Bench in Kobian ECS India Pvt. Ltd., 2003 (157) E.L.T. 662 (T) = 2004 (60) RLT 112 (CESTAT-Mum). In that decision, it was held as follows : '(a) The provisions regarding DEPB Scheme are contained in Paras 7.14 to 7.17 of Import-Export Policy, 1997-2002 (April, 2000 Edition). The procedure regarding applying for DEPB and obtaining credit are contained in Paras 7.38 to 7.53 of the Handbook of Procedures, Vol. 1. During the period in question, DEPB on post-export basis alone was to be granted. The provisions regarding grant of DEPB credit on....
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.... of duty on the imported goods debit the Pass Book, the Customs once again verify the DEPB Licence. (c) The Central Board of Excise and Customs vide Circular dated 17-4-97 has described the procedure to be followed under DEPB Scheme. In its circular dated 3-6-1997 in paras 1 and 2 the Board has directed as under : "Attention is invited to Circular No. 10/97-Cus., dated 17-4-97 whereby detailed guidelines for operation of duty entitlement passbook scheme were issued. The said circular provides for the exporters to declare in the shipping bill the serial number of the export products in the public notice issued by the DGFT and the rate claimed. It was further provided that correctness of this declaration should be verified by processing t....
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...., instructions and the law, in the matter of DEPB, we cannot uphold the decision arrived at by the Commissioner to have impugned the exports and come to a finding that the exports made in this case were not entitled to DEPB under serial no. 86 of the Product Code 83 of the DEPB Schedule. Since all that was required, in the case was for the Commissioner to have reported the matter to the DGFT authorities and not sit in judgments over the grant and or determine entitlement of DEPB which were not within the jurisdiction of the Customs to do so. The order of determination of the eligibility or otherwise of DEPB as made in this case cannot be upheld. Thereafter in para (g) it was held as follows : (g) The finding of the Commissioner that Rul....