The goods may be liable for confiscation when value of export goods in invoices is exaggerated to avail excess DEPB Credit
In the instant case, Yash Export (the Exporter) exported consignment of PVC soles and the valuation which was entered and declared for export of the aforesaid consignment was grossly over invoiced with a view to avail excess DEPB credit. The Department confirmed Order for confiscation of said goods with option to pay redemption fine and also imposed personal penalties on (a) the Exporter, (b) Mr. G.P. Jaiswal (the Respondent or the Del-Credere Agent) on ground that goods were cleared by son of such agent, (c) Mr. Rakesh Mishra, person who looked after container and received payment of such services rendered, and Mr. Rakesh Srivastava, Superintendent of ICD.
The Hon’ble Supreme Court held that the provisions of Section 113(d) of the Customs Act would get attracted and goods may be liable for confiscation when value of goods in invoices is exaggerated.
Further, penalty imposed on the Respondent cannot be imposed merely because goods were cleared by his son. Similarly, merely because Mr. Rakesh Mishra looked after container and received payment therefor, penalty could not be levied. However, Mr. Rakesh Srivastava, was working as Superintendent of ICD and had a direct role in obtaining valuation report enabling exporter to claim higher DEPB credit. Hence, penalty imposed on the Superintendent was confirmed.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: [email protected])