Kritika Enterprises Vs Commissioner of Customs (Appeals) (CESTAT Delhi)
CESTAT Delhi held that no stranger to the contract of sale including the Customs officer has any right to re-determine the FOB value. The Customs Act and Rules cannot be applied to re-determine the FOB value. Accordingly, appeal allowed and order set aside.
Facts- The appellant filed Shipping Bill dated 22.12.2018 to export Oil Filters declaring Free on Board (FOB) value of Rs.1,36,75,185/-. It paid IGST of Rs. 24,61,534/- and did not claim any rebate of State levies, but claimed Merchandise Exports Incentive Scheme (MEIS) @ 3%. The consignment was examined by the customs officers and the goods were alleged to have been over-valued to claim higher IGST refund/MEIS.
On request of the exporter, the consignment was released provisionally on execution of bond and bank guarantee and it was allowed to be exported. Thereafter, the Additional Commissioner passed an order dated 26.04.2019 rejecting the FOB value and re-determining it under Rule 6 and Rule 8 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 r.w.s. 14 of the Customs Act, 1962. He confiscated the goods u/s. 113 (i) of the Act and allowed their redemption on payment of fine of Rs. 8,00,000/- u/s. 125 of the Act. He also imposed a penalty of Rs. 12,00,000/- u/s. 114 (iii) of the Act and the penalty of Rs. 12,00,000/- u/s. 114AA of the Act on the appellant. This order of the Additional Commissioner was upheld by the Commissioner (Appeals) through the impugned order.
