Case Law Details
Kalima Exim Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that adopting the values as fixed by the Valuation Committee without revealing the methodology and basis adopted for such values is not correct and is not in accordance with the Valuation Rules.
Facts- The appellant had filed two shipping bills for export of “Ready Made Gents Shirts” and “Kids Pant Shirt Set” to M/s. Inter Active Commercial Services, Dubai initially for a value of Rs.24,69,333/- under claim for duty drawback of Rs.1,44,551/-.
Thereafter, the appellant filed fresh shipping bill for the very same consignments with a revised value of Rs.8,26,715/- under the claim of duty drawback of Rs.67,264/- when it was realized that their representative had committed a mistake by wrongly declaring the values mentioned in earlier export documents.
On adjudication, the Additional Commissioner of Customs rejected the declared value and re-determined the value at Rs.4,68,377/- under Rule 6 of the Valuation Rules, 2007 read with Section 14(1) of the Customs Act and accordingly, restricted the drawback benefits to the re-determined value. Further, the exported goods were held liable for confiscation u/s. 113(h)(i) of Customs Act, 1962 and imposed a redemption fine of Rs.1,50,000/- u/s. 125 of the Customs Act, 1962, apart from a penalty of Rs.1,50,000/- u/s. 114(iii) of the Customs Act, 1962 on the appellant.
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