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2018 (9) TMI 326 - CESTAT MUMBAIMisdeclaration of imported goods - ineligible concessional rate of duty - Import of 'secondary/defective cold rolled grain oriented steel sheet coils' as 'prime cold rolled grain oriented steel sheet coils' - demand of differential duty. Held that:- It is apparent from the history of imports made by the appellant, and from the contents of the standing instruction, that there is a substantial variation in the prices of prime and secondary/defective coils. Transformers are undeniably critical to the power transmission and distribution sector and the laminates manufactured from the coiled steel sheets are at the core of the transformer; its physical and chemical properties are crucial to its efficiency and therefore, to its price. Visual examination and photographic display will not suffice as acceptable substitutes. For a legally valid assessment of duty, there can be no escapement from a downward revision in the assessable value of the imported goods. That is the inevitable consequence of misdeclaration and consequent rejection of declared value. Revenue cannot have its cake and eat it too. If the goods are secondary, the constitutional provision mandating the collection of tax chartered by law, cannot be ignored to maximise revenue. To do so is illegal. To affirm so is to abet disregard of the rule of law. The adjudication order is tainted by this lack of validity. The facts are not established and the machinery provisions of law cannot subordinate the charging provisions of the statute. There is no material evidence to sustain the allegation of misdescription and statements, in the absence of facts and circumstances, fail the test of law - appeal allowed - decided in favor of appellant.
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