Home Case Index All Cases Customs Customs + AT Customs - 2006 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (11) TMI 384 - AT - CustomsValuation of the goods - Rejection of transaction value - Confiscation, fine and penalty - Second-hand goods - HELD THAT:- The adjudicating authority has not accepted the transaction value on account of certain discrepancies between the invoice quantity and the actual quantity verified by the customs. Based on the market value, the value has been assessed. Even though the importer produced Chartered Engineer’s certificate, the same has not been accepted by the adjudicating authority on the ground that the same was based on website for valuation of the goods. He has adopted the valuation by BSI Inspectorate Engineer. He has stated that even though the assesse was allowed to cross-examine the BSI Inspectorate Engineer, he has failed to utilize the opportunity. In these circumstances, the adjudicating authority has re-determined the assessable value. We are of the view that in order to reject the transaction value, the adjudicating authority has to establish one of the circumstances mentioned in Rule 4(2) of the Customs Valuation Rules as held by the Hon’ble Apex Court in Eicher case [2000 (11) TMI 139 - SUPREME COURT]. To invoke Rule 10(A), the department should have enough grounds. There is no evidence that the appellant had paid extra amount to the foreign supplier through channels other than banking channels. In the absence of evidence we hold that the transaction value has to be accepted. Therefore, on the valuation aspect, we allow the party’s appeal. As regards the licensing aspect we hold that in view of the specific provisions in the import policy, the second-hand capital goods require licence. In the absence of licence they are reliable to be confiscated. Hence, the confiscation and imposition of fine and penalty are in order. However, having regard to the facts and circumstances of the case, the redemption fine is limited to 10% of the assessable value and a penalty under 112(a) is limited to 5%. We allow the appeal in the above terms.
|