Commissioner of Customs Vs Inter Continental India (CESTAT Ahmedabad)
CESTAT Ahmedabad held that there is no circular trading of cut and polished diamonds and gold jewellery exported. Further, also held that revenue has failed to prove misdeclaration. Accordingly, appeals of revenue dismissed.
Facts- Intelligence was received by the officers of DRI to the effect that M/s Adani Exports Ltd., (Now Adani Enterprises Ltd.) have formed a consortium with various companies and thereby indulged in mis-declaration of FOB value and circular trading of Cut and Polished Diamonds (CPD) and Gold Jewellery exported by them, with an intent to artificially inflate their export turnover and to fraudulently avail the benefit of Target Plus Scheme. Further investigation into the export of studded Gold Jewellery by M/s Adani Enterprises Ltd. and its group/associated companies, during the year 2004-05 carried out by DRI, also revealed existence of circular trading and over invoicing of their exports of studded Gold Jewellery to avail benefits of Target Plus Scheme.
On the misuse of the Scheme being brought to its notice, the DGFT vide Notification No. 27/2004-09 dtd. 23.02.2005 excluded the export of studded Gold Jewellery from the purview of Target Plus Scheme. Further, vide Notification No. 48/2005 dtd. 20.02.2006, the exports of diamonds and other precious, semi precious stones were also removed from the list of export items entitled for Target Plus Scheme. On conclusion, of the investigation, show cause notice dtd. 11.09.2009 and 31.12.2009 was issued by DRI.
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