Per G.R. Sharma :

In the impugned order the Ld. Commissioner of Customs held :

"In the light of above discussion I find that the contention of the unit that over valuation in exports is not an offence under FERA or Customs Act is untenable. A case of over-valuation has clearly been made out against the unit inasmuch as huge sums through two related persons are sought to be transacted by the channel of software export. I am also not convinced of the view that ERDCI is not competent to value software. As discussed, there is a violation of Section 18 (1) (a) read with Section 67 of FERA. It is mandatory for the unit to furnish correct declaration under FERA before attempting any export and Section 48 of FERA requires that every declaration under FERA must be a correct declaration. A false declaration has contravened Section 18 (1) (a) and hence attracts the provision of Customs Act. Goods in this case i.e. one CD containing software sought to be exported have become prohibited goods in terms of FERA, which prohibition is deemed have been imposed under Customs Act, 1962. Thus goods are liable to confiscation under Section 113 (d) of Customs Act and unit liable to action under Sectio