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260 EXCISE LAW TIMES [ Vol. 372

placed on the decision of M/s. Siddachalam Export Private Limited v. Commissioner
of Central Excise, Delhi-III; [2011 (267) E.L.T. 3 (S.C.)]. Further, Learned Advocate
also relied upon the decision of the Hon’ble High Court in the case of Commis-
sioner of Customs, New Delhi v. Vishal Exports Overseas Limited, [2007 (209) E.L.T.
331 (S.C.)] regarding acceptance of FOB value, which was supported by the Bank
Realisation Certificate (BRC). The Present Market Value (PMV) was also not ob-
tained by the Department which is not legally correct. In the circumstances,
Learned Advocate submitted that no case is made out for the misdeclaration of
the export consignment and therefore confiscating the export goods and imposi-
tion of redemption fine is illegal, and also on the director of the company is also
not sustainable.
11. Learned Departmental Representative supports the finding con-
tained in the impugned order.
12. We have heard Learned Advocate appearing on behalf of the Ap-
pellant and Learned Departmental Representative on behalf of the Revenue. The
issue to be decided in this appeal is as to whether the appellant has misdeclared
the export consignment in respect of value thereof, which as per the department
is highly inflated. The department has solely relied upon the report obtained
from the CSIR-CLRI regarding composition and price of the export consignment.
In this regard it will be appropriate to examine the report received from CLRI
which is reproduced as under :
With reference to your letter No. F. No. DRI/KZU/CF/INT- 56/2016/5737,
dated 6-1-2017, we furnish the technical evaluation report for the said
leather waist coat with artificial fur.

Sl. Evaluation Criteria Evaluation Report
No.
1. Determination of quality Method: Visual inspection Leather waist
of the material used in coat made of suede bits
the sample
2. Constitution of the prod- Mat made of suede leather bits, screen
uct printed and fabricatd as waist coat. Lin-
ing material: Polyster, Fur: Synthetic
(artificial)
3. Manufacturing cost and Manufacturing cost: Rs. 833/- (based on
procedure of determina- the largest size)
tion Basis of Determination Leather = Rs.
450/-; Lining material = Rs. 25/-; Button
= Rs. 8/-; Synthetic fur = Rs. 50/-; stitch-
ing = Rs. 150/-; Overheads = Rs. 150/-
*Evaluation based on samples drawn by DRI-KZU and received in a sealed
packet at our office as two sacks.
13. The department solely relied upon this report without resorting to
any market inquiry regarding valuation of identical/similar goods as evidence
for discarding the value declared by the exporter. We also find that the Learned
Additional Commissioner DRI has communicated with the Director of CSIR-
CLRI, vide letter dated 6-1-2017. The relevant portion of the letter is reproduced
as under :
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