SC: APPELLATE APPLIED WRONG PRINCIPLES IN REJECTING CLAIM FOR CUSTOMS DUTY

The Supreme Court has stated that the Customs, Excise & Service Tax Appellate Tribunal had applied wrong principles while rejecting the claim for customs duty drawback in the case, Siddachalam Exports Ltd. vs. Commissioner of Central Excise. The exporter was accused of inflating shipping bills for export of ladies' tops land denim shirts consigned to a Russian firm. The Court stated that instead of first determining the value of the goods on the basis of contemporaneous exports of identical goods, the revenue department erroneously resorted to a market inquiry. If for any reason data of contemporaneous exports of identical goods was not available, the procedure laid down under the 1988 Rules should be followed and market inquiry could be conducted only as a last resort.