Export overvaluation-Supreme Court dismisses revenue appeal
REVENUE filed appeal against the order of CESTAT quashing the deduction of drawback and penalties. The Supreme Court dismissed revenue appeal by holding that:
Entire material placed before the Tribunal has been discussed and on that basis, a finding of fact is arrived at to the extent that the allegations of flow back of the remittances by way of Hawala could not be proved by the Department. It is further recorded by the CESTAT that the invoices etc. which were raised of particular amounts were duly checked by the Department at the time when the exports were being made. However, the entire amount as reflected in the said invoices was received by the respondents. In view of the finding of fact and in the absence of any evidence to show that the money was remitted by way of Hawala, the case of over-invoicing has not been established by the Department. No infirmity in the order of the CESTAT.