Case Law Details
Jayant Vikram @ Vikram Bihari Vs Commissioner of Customs (Export) (CESTAT Delhi)
The case of Jayant Vikram, also known as Vikram Bihari, versus the Commissioner of Customs (Export) involves the appellant challenging penalties imposed on him under sections 114(iii) and 114AA of the Customs Act, 1962. The penalties were initially imposed by the adjudicating authority and upheld by the Commissioner (Appeals) through impugned orders. There are three appeals filed by Jayant Vikram, each contesting penalties imposed in relation to specific orders.
The crux of the case revolves around the misdeclaration of goods by certain exporters to claim ineligible drawback. The Directorate of Revenue Intelligence received intelligence suggesting that exporters were misdeclaring the description, quantity, and value of export consignments to avail of ineligible drawbacks. Upon investigation, it was discovered that the goods being exported were different from the declared description, and their values were significantly inflated.
In Appeal No. C/50306 of 2021, it was found that nine shipping bills were filed for the export of “Boys Trousers made of manmade fibres” with declared FOB values claiming drawback. However, upon examination, the goods were found to be different, with the actual value being far less than declared. Moreover, it was revealed that the exporter mentioned on the shipping bills had no knowledge of the exports, and the Import Export Code (IEC) was obtained based on false declarations. The appellant, acting as the Manager of the Customs House Agent (CHA), filed the shipping bills without verifying the authenticity of the exporter, leading to fraudulent claims for drawback. Consequently, penalties were imposed on various individuals, including the appellant, under relevant sections of the Customs Act.
Similar instances were found in Appeal No. C/50198 of 2021 and Appeal No. C/50199 of 2021, where penalties were imposed on the appellant for his involvement in misdeclaration of goods and fraudulent claims for drawback.
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