Shah, J. - (1.) Questions requiring consideration in this appeal are :-(A) Whether over-invoicing of the goods for export would mean attempt to export prohibited goods and (B) Whether, while exporting the goods, exporter has to give value of the goods as provided under Section 14 of the Customs Act, 1962 (hereinafter referred to as the Act) or the value of goods which he expects to receive on sale of goods in the overseas market
(2.) The facts in brief are :- It is stated that the appellant is engaged in the export of garments. Appellant received an order from an overseas buyer i.e. from Dubai, for supply of ladies skirts, the contracted price for which was said to be approximately $10.25 per piece. Appellant filed 4 shipping bills in 1998 for export of 28000 pieces of ladies skirts @ $10.25 per piece (Rs. 434 per piece) amounting to Rs. 1,21,54,447/-. On checking, the actual quantity of the skirts was found to be 21184 pieces. On enquiry, the market price of the skirts was ascertained to be Rs. 45/- per piece, according to which total value of the goods comes to Rs. 9,53,280/-. The exporters had claimed a draw back of Rs. 21,87,800/- on the consignment @ Rs. 78/- per piece. For shortage of goods, vide letter dated 4-2-1999, the exporters pleaded that it was an unintentional mistake which had happened on the part of the fabricators and suppliers. During the course of hearing, on 6-2-1999, for the drawback, it was admitted by the exporters that the market price of Rs. 45/- per piece was acceptable to them and that their claim for drawback be not granted. The Commissioner of Customs noted that this was the second such case belonging to the same exporters and that there was an organized racket to claim fraudulent drawback by deliberately over-invoicing the readymade garments. The Commissioner of Customs imposed a redemption fine of Rs. 10,00,000/- and levied a penalty of Rs. 20,00,000/-. It was held that no drawback was admissible even if the party exported the goods in terms of Section 76 of the Act as the market value of the goods was less than the amount of drawback claimed.
(3.) Being aggrieved by the said order, the appellant filed appeal before the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as the Tribunal). The Tribunal also dismissed the appeal and held that the over-invoicing of the goods for exportation was an offence under the Act. Hence, this appeal.;