TMI Blog2001 (8) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... clared in export document with regard to their description and some others with regard to value so as to claim undue/more duty credit. In view of the urgency to carry out the export, appellant filed a letter dated 24-3-2001 explaining the differences in description and seeking clearance of the goods. Thereafter the Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi, passed the adjudication order SKS/CC/ICD/TKD/64/2001, dated 20-4-2001 confiscating the entire export consignment under Section 113(d) of the Customs Act and imposing penalty of Rs. 2 Lakhs on the appellant under Section 114(i) of the Customs Act. The order also gave the appellant an option to redeem the confiscated goods on payment of a fine of Rs. 4 Lakhs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of the piston inside and that, despite the presence of iron sleeve inside, all persons dealing with these cylinders consider them only as aluminium cylinders and that there was no misdeclaration of description. With regard to declared price the letter stated the position as under : Rates of Piston Ring set special. Your honour we may write here that we are exporting Ring set in seven types and sizes. Rates for all the quality differ from Rs. 21 set to Rs. 150 per set. Rates charged for Ring set Rs. 150 per set is quite competitive as the Rings are specially designed for special pistons as required and confirmed by the buyer. For only 1000 sets of Piston Rings we had gone for die-cast, it took about a years time to prepare these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire consignment. He pointed out that if the authority had proceeded only against the goods against which they had objection, the appellant would have been spared much loss and difficulty inasmuch as he would have been able to complete the export of the remaining goods on time and met his contractual obligation. 6. Learned Counsel also pointed out that objection raised regarding mis-declaration of description and value were also peripheral and not of any substance. All automobile cylinders of aluminium have iron sleeve and it has to be so. Learned Counsel submitted that the finding of the Commissioner that the cylinder was actually found to be of composite material i.e. Iron and Aluminium was not correct. Composite material will be so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Only a statement to that effect has been made. The learned Counsel submitted that the verification carried out by the Customs authorities was a complete misdirection. He submitted that the auto parts in question were intended for use in foreign made two wheelers. Neither those vehicles, nor their parts are commonly made in India. Therefore, there was no reliable basis for the comparison. That the declared prices were the actual prices of the goods is also clear from the fact that variation, according to the Commissioner himself, was only to the extent of Rs. 15/- in respect of the part declared at Rs. 50/-. In respect of the variety declared at Rs. 150/- the appellant had explained that their own cost was about Rs. 130/-. The learned Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order is clearly in error in holding the cylinders to be of composite material. A composite material will be composite through and through. The presence of a component made of another metal/material does not change the name and identity of the goods. Therefore, the presence of cast iron sleeve did not make the aluminium cylinder a product of composite material or of iron. Objection on this score is, therefore, not sustainable. The objection about the description of steel forging is also not justified as those goods were the product of forging. The appellants had declared the transaction value of the goods as export price. They had stated that the goods were specially designed for special pistons and that they had to prepare die cast f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified by normal commercial considerations. These explanations should have found favour with the adjudicating authority. Instead that authority proceeded as though wherever a declared export price did not tally with the average market price, the declared price is an inflated price and offence of mis-declaration is involved. There is no legal basis for such an approach. It is also an unreliable and dangerous way of dealing with export prices inasmuch as it is common that prices vary from time to time and from supplier to supplier and particularly so, in the case of engineering goods where prices fluctuate depending upon design, specification, quality, brand, market segment etc. The objections raised in the present case are flimsy and do not c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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