JUDGMENT

V.S. Sirpurkar, J. — Final order of Customs, Excise & Gold (Control) Appellate Tribunal (hereinafter called “the Tribunal” for short) allowing the appeal filed by M/s.Vishal Exports Overseas Limited (hereinafter called “the assessee” for short) is in challenge at the instance of Commissioner of Customs (hereinafter called “the Revenue” for short).

2. The assessee exported 4.8 lakh pieces of coffee mugs between February and November, 2001. The export price (FOB) was US $3.40 per piece. The exported goods were eligible for Duty Entitlement Pass Book (DEPB) Benefit/Scheme. Accordingly, the same was claimed as per Rules at the rate of 11% or 10%. The assessee had declared a market value of Rs.52.50 per piece which was worked out at 150% of the assessee’s purchase price which was Rs.35/- per piece. These purchases were made from the manufacturers in Rajasthan and as per the clearance documents of Central Excise (AR-4), Rs.35/- was the price per piece.

3. The Assistant Commissioner of Customs proceeded against the assessee by alleging that the assessee had mis-declared the FOB value at US $3.40 (Rs.150/-) per piece. It was the view of the Department that the price was inflated to