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Regarding revised guidelines for determination/ verification of the
Present Market Value (PMV) under DEPB Scheme
Circular No 23 dated 11th May 1999
Attention is
invited to Circular No 69/ 97-Cus. dated 08.12.97, as amended by Circular No.
79/ 98-Cus. dated 22.10.98.
2. A
reference has been received from filed formations that under the provisions of
the Customs Act, 1962, a period of 5 years has been provided for issue of Show
Cause Notices in cases involving fraud/ collusion/ wilful misstatement or
suppression of facts. The Circular No. 69/ 97-Cus. dated 8.12.97 issued by the
Board does not purport to restrict the statutory provisions of the Customs Act,
wherever they may be applicable. However in order to remove doubts or ambiguity,
if any, in Para Nos. 6 & 7 of the Circular No. 69/ 97-Cus. (as amended by
Circular No 79/ 98 dated 22.10.98), it is being further amended to include the
following provisions in para 6/ 7.
3. Where
Commissioner of Customs is satisfied that the inquiry for determining the
Present Market Value of the goods, has to be extended for the reasons involving
fraud/ collusion/ wilful misstatement, or suppression of facts, which shall be
recorded by him in Writing, he may extend the period of three months till such
further period as is deemed necessary. In such cases, para 7 of Circular No. 69/
67-Cus. was never intended to be applicable. In such cases the consignment
should be allowed provisional clearance and the shipping bills should also be
assessed provisionally.
Such shipping
bills will not be entitled to DEPB scrip till the market inquiry is completed,
and provisionally assessed shipping bills are finalised. Where the Present
Market Value declared by the exporter is not accepted, a show Cause Notice shall
be issued to the exporter as to why the PMV declared by him should not be
rejected/ revised.
4. In
regard to consignments exported earlier, even prior to the issue of this
clarification, if the Commissioner is satisfied that the above-mentioned
circumstances exist, which necessitate an enquiry into PMV of the goods in any
particular case, the Commissioner may cause enquiries and proceed to have the
credit modified by DGFT or to deny the benefit of duty free import against such
DEPB scrip till it is amended.
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