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258 EXCISE LAW TIMES [ Vol. 372

value of the said declared 9640 pcs of Leather Waist Coat under the
cover of 8 (eight) Shipping Bills to be Rs. 96,40,000/- (Rupees Ninety
Six Lakhs Forty Thousand only).
(c) I diny the Drawback of Rs. 48,19,271/- (Rupees Forty Eight Lakh
Nineteen Thousand Two Hundred and Seventy One only) sought to
be claimed as per the declaration of the Shipping Bills.
(d) I impose penalty of Rs. 1,00,00,000/- (Rupees one crore only) on RBT
Exports Pvt. Ltd. under Section 114(iii) of the Customs Act, 1962.
(e) I impose penalty of Rs. 50,00,000/- (Rupees fifty lakh only) on Sri Bi-
rendra Kumar Tiwari under Section 114AA of the Customs Act, 1962.
2. The brief fact of the case as evident from the impugned order is that
based on intelligence developed by Directorate of Revenue Intelligence (DRI-
Calcutta), the appellant firm was searched on 1-11-2016 and various documents
along with one mobile phone [I-phone Model 1530, one hard disk (Seagate
500GB Serial No. S2A6NLAC) and 5 files containing all export documents] were
resumed. The search was also conducted at the residential premises of the Direc-
tor of the appellant Company, Shri Birendra Kumar Tiwari, however, nothing
incriminating was recovered, from there.
3. The search was conducted in respect of purported export of 9460
pieces of Leather Waist Coat, having declared value of Rs. 5,07,29,168/- attempt-
ed to be exported under the cover of 8 (eight) shipping Bills having numbers
1678919, 1678990, 1678991, 1678998, 1678993, 1679035, 1679036 and 1679037 all
dated 17-10-2016. On examination of the container in question the export con-
signment of the waist coat under the cover of aforesaid shipping Bills were found
to be overvalued at Rs. 5.07 crores in order to avail higher amount of drawback
to the extent of Rs. 48.19 lakhs. On examination of the export consignment it was
found that the Waist Coat (Leather Jacket) which was declared at price of US dol-
lar 80 was found to be highly inflated. Accordingly, the consignment was de-
tained and samples were drawn and sent to CSIR-CLRI, Chennai. The CLRI
submitted the test report which is as under :

Sl. Evaluation Criteria Evaluation Report
No.
1. Determination of Method : Visual Inspection Leather waist
quality of the material coat made of Suede bits
used in
2. Constitution of the Mat made of suede leather bits, screen print-
product ed and fabricated as waist coat. Lining Mate-
rial Polyester, Fur: Synthetic (artificial)
3. Manufacturing Cost Manufacturing Cost : Rs 833/- (based on
and procedure for Largest size) Basis of Determination : Leath-
determination er = Rs. 450/-; Lining Material = Rs. 25/-;
Button Rs. 8/-; Synthetic Fur = Rs. 50/-;
Stitching = Rs. 150/-; Overheads = Rs. 150/-

Based on the test report the export consignment was confiscated on the
ground that the consignment was attempted to be exported to avail the higher
amount of drawback. The adjudicating authority, however, allowed the export to
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