Jayantah Trading Co Vs Commissioner of Customs(Appeals) (CESTAT Delhi)
In a significant ruling for exporters, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi has set aside an order by the Commissioner of Customs (Appeals) that re-determined the Free on Board (FOB) value of exported readymade garments. The appeals were filed by M/s Jayantah Trading Company and its proprietor, Shri Sunil Kumar, challenging the re-determination of FOB value, confiscation of goods, and imposition of fines and penalties. Appellant was represented by Shri Viney Kumar, Advocate.
The case originated from intelligence received by the Directorate of Revenue Intelligence (DRI) alleging that Jayantah Trading Company was exporting sub-standard and over-valued garments to avail inadmissible duty drawback and other export incentives. A show cause notice (SCN) was issued, proposing to re-classify certain goods and re-determine the declared FOB value of Rs. 2,49,90,427/- to a significantly lower value of Rs. 61,93,360/-. The SCN also proposed confiscation of goods under Section 113 of the Customs Act, 1962, imposition of redemption fine under Section 125, and penalties under Sections 114 and 114AA of the Act on both the company and its proprietor. Furthermore, it was proposed that pending duty drawback and export incentives be re-determined and appropriated against the fine and penalties.
