Home Case Index All Cases Customs Customs + AT Customs - 2006 (3) TMI AT This
Issues Involved:
1. Rejection of Declared Value 2. Mis-declaration of Quantity 3. Confiscation and Imposition of Fine 4. Imposition of Penalty 5. Violation of Principles of Natural Justice 6. Reliance on Market Publications 7. Transaction Value Determination 8. Cross-examination of Witnesses Issue-wise Detailed Analysis: 1. Rejection of Declared Value: The Commissioner of Customs (Adjudication) rejected the value declared by the appellant for cloves and assessed the value at US$ 5500 PMT for certain bills of entry and US$ 5600 PMT for others. The investigation revealed that the goods were invoiced at a lower price (US$ 2600 PMT) while the prevailing international price was significantly higher. The Commissioner concluded that the declared value did not represent the transaction value and was unrealistic given the high prevailing prices. 2. Mis-declaration of Quantity: The goods imported under certain bills of entry were also found to be mis-declared concerning their quantity. For instance, the consignment declared under bill of entry No. 171954 was found to have an excess quantity of 1.05 MTs upon actual examination. This mis-declaration confirmed undervaluation and intent to evade customs duty. 3. Confiscation and Imposition of Fine: The Commissioner held that the goods were liable for confiscation under Section 111(m) of the Customs Act, 1962, due to mis-declaration of value and quantity. Since the goods were provisionally released, a fine of Rs. 2 lacs was imposed in lieu of confiscation. 4. Imposition of Penalty: A penalty of Rs. 10 lacs was imposed on the appellant firm under Section 112(a) of the Customs Act, 1962, due to the mis-declaration and undervaluation of imported goods. 5. Violation of Principles of Natural Justice: The appellant contended that there was a gross violation of principles of natural justice as the cross-examination of a material witness, Mr. Bhumish Shah, was not allowed. However, the Commissioner noted that the appellant's advocate had requested to proceed with the decision without further personal hearings, which curtailed the opportunity for cross-examination. 6. Reliance on Market Publications: The Commissioner relied on market publications such as the 'Public Ledger' and the Bulletin of the Spices Market published by the Spices Board of the Ministry of Commerce and Industry, Government of India. These publications indicated that the prices of cloves were significantly higher than the declared value, supporting the conclusion of undervaluation. 7. Transaction Value Determination: The Commissioner rejected the transaction value declared by the appellant based on a purported contract dated 23.11.2000, which was found to be unrealistic and not reflective of the prevailing market prices. The Commissioner determined the value under Rule 5 of the Valuation Rules, considering contemporaneous imports and market prices. 8. Cross-examination of Witnesses: The appellant's counsel had requested the cross-examination of five witnesses, but only two were cross-examined. The Commissioner noted that the appellant's advocate requested to proceed with the decision without further personal hearings, which led to the remaining witnesses not being called for cross-examination. The Commissioner relied on the statements of various importers and other evidence, concluding that the declared value was understated. Final Order: The appeals were dismissed, and the Commissioner's order was upheld, including the fine and penalties imposed on the appellant firm and its partner.
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