No drawback shall be allowed when drawback exceeds market value of goods

Modak Dyeing & Printing Co. Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi) Held that if the transaction value (FOB value) is so high, that the drawback due on the goods exceeds the market value of the goods, then, as per section 76(1) (b) of the Customs Act, no drawback shall be allowed. Facts- The appellant filed two shipping bills dated 31.08.2018 for export of Girls Frocks Woven Made of Manmade Fibre. The appellant declared total FOB value of Rs. 4,10,52,321/- in the shipping bills which worked out to about Rs. 274.13 per piece. Receiving intelligence these goods were overvalued in...