Customs – Rule 3(1) of Drawback Rules, 1995 – Export of goods – Mis-declaration of description – Imposition of penalty – Appellant/company had put in export two shipments covered under shipping bill filed through their CHA – Officers examined shipments and detained them on ground of mis-declaration – SCN alleging that Appellant had deliberately mis-declaring the description of goods and inflating the value of goods for purpose of wrongly availing drawback in contravention of second proviso to Rule 3(1) of the Rules – SCN proposing confiscation of seized goods, rejection of declared price and imposition of penalties under Section 114(iii) and 114AA of the Act on Appellant and its Director – Said proposal was confirmed vide Order-in-Original as well as Order-in-Appeal – Whether Appellant had any intention to mis-declare and to overvalue the consignments for claiming ineligible duty drawback – HELD – According to second proviso to Rule 3(1) of the Rules, 1995, duty drawback is not available with respect to export of old and used goods – Goods in consignment were declared to be freshly manufactured goods, but on examination, were found to be old and used goods – At time of offloading the goods from vehicle, field boy of CHA noticed some goods to be old and used and sent information to Appellant – Appellant requested Deputy Commissioner vide letter for withdrawal of shipment – At time when letter relied upon by Appellant was sent, Appellant already had knowledge about mis-declaration – In such circumstances, praying withdrawal of shipment on ground of ‘order being cancelled by buyer due to late delivery’ is a deliberate concealment on part of Appellant – Materials on record corroborate intention of Appellant for exporting inferior quality goods against higher values to avail higher duty drawbacks – As Appellant had intention to mis-declare and overvalue the goods to claim ineligible duty drawback, rejection of declared value of export goods, order of confiscation and imposition of penalties are affirmed – impugned order is upheld and the appeal is dismissed

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