TMI Blog2024 (3) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... and how it is carried out. The allegation that the goods have been mis-declared is without any factual basis. Further, in para-2 of the SCN dt. 12.3.2008 it has been categorically stated by the department that docks officers have examined and reported that the goods are Stock Lot of Polyester Knitted Fabrics in different colours. We therefore hold that the finding of the department that goods have been mis-declared is without any factual basis and requires to be set aside. Undervaluation of the goods - The appellant has declared the value of the goods as USD 1/kg. However, the department has re-determined the value as Rs.112.18/ kg and Rs.137.47/kg in the de novo orders. In the show cause notice, the enhancement of value has been proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pile Fabrics declaring the same as Stock Lot Polyester Knitted Fabrics vide Bills of Entry No.217950 dt. 16.05.2006, 220382 dt. 19.05.2006 and Bs/E No.217769 dt. 15.05.2006, 220381 dt. 19.05.2006 and 226911 dt. 30.05.2006 respectively. On investigation conducted by the department, it was noted that the appellants had misdeclared the goods and also undervalued the goods. After due process of law, the original authority held that the goods are not stock lot and also not pile fabrics but knitted fabrics with one side brushing. The value declared by the appellant M/s.Y.S. Enterprises as USD 1/KG (CIF) was enhanced and in the denovo proceeding redetermined as Rs.112.18/kg. and the value declared by M/s.D.M. International as USD 1/kg (CIF) was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hari Radhakrishnan appeared and argued for the appellant. It is submitted that in the show cause notice, the value was proposed to be enhanced on the ground of evidence gathered from the traders after conducting market enquiry. The original authority in the earlier proceedings had not allowed the appellant to conduct cross examination of these traders against which the appellant had moved the Hon ble High Court. In the subsequent de novo proceedings the appellant was allowed cross examination and none of the traders had supported the evidence put forward by the department to demand duty on the basis of enhanced value of goods. It is submitted by the Ld. Counsel that the adjudicating authority has confirmed the demand on the basis of NIDB da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is misdeclaration of goods only on the basis of the report filed by the Textile Committee which is factually incorrect and based on assumptions and presumptions of the expert who has given the report. More over in para-2 the department has categorically stated that the fabrics were reported by the Docks officers as stock lot of Polyester Knitted Fabrics . It is thus argued that there is no misdeclaration of the goods. Ld. Counsel prayed that the appeals may be allowed. 6. Ld. A.R Shri R. Rajaraman appeared for the department. The findings in the impugned orders were reiterated. 7. Heard both sides. 8. The issue to be considered is whether the enhancement of value as well as the allegation that the goods have been mis-declared is legal and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the SCN dt. 12.3.2008 it has been categorically stated by the department that docks officers have examined and reported that the goods are Stock Lot of Polyester Knitted Fabrics in different colours. We therefore hold that the finding of the department that goods have been mis-declared is without any factual basis and requires to be set aside. 11. The second point for analysis is whether there is undervaluation of the goods. The appellant has declared the value of the goods as USD 1/kg. However, the department has re-determined the value as Rs.112.18/ kg and Rs.137.47/kg in the de novo orders. In the show cause notice, the enhancement of value has been proposed on the basis of market enquiry. This evidence with regard to the market enquir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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