- (1.) Civil Appeal No. 1581 of 2007
(2.) RESPONDENTS are merchant exporters. They purchased CD -ROMs containing software from one manufacturer. Purchase price was Rs. 640/ - per piece. Respondents had entered into a contract with foreign buyers for export of the CD ROMs at the rate of USD 18 per piece, which was equivalent to Rs. 761.40/ - at the prevailing exchange rate. Respondents realised the full export proceeds from the foreign buyers. Based on the investigations, show cause notice was issued alleging that the value declared by Respondents for export was inflated with a view to take the advantage of DEPB schemes. It was observed that the software in the CD -ROMs were otherwise freely downloadable from the internet. According to the Department, fair value of the CD -ROMs, after considering all incidental costs, should have been much lower.
(3.) THE show cause notice was adjudicated upon by the Commissioner who vide Order -in -Original dated 27.03.2000 dropped the proceedings and held that there had been no contravention of the provisions of Customs Act.;