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2011 (3) TMI 1268 - AT - CustomsApplication for stay - Demand - Differential duty - Undervaluation of imported goods - Rule 9 of the Customs Valuations (Determination Value of Imported Goods) Rules, 2007 - Held that:- There are evidences to show undervaluation of the impugned goods as seen from the fact that the prices declared remained more or less static, irrespective of increase in value of zinc in international market and the fact that in the case of few Bills of Entries undervaluation is proved by acceptable collateral evidence and is accepted by the Appellant. Waste materials by its very nature cannot be of uniform standard and it is difficult to assess its value unless more information about the usable material and the form in which such usable material is present, in the waste are available. While LME prices can be good indicator to detect undervaluation it cannot be a measure for undervaluation of commodities like zinc ash/skimming and zinc dross without taking into account other relevant factors. The department is not having test reports to show the zinc contents in each of the consignments and the content of metallic zinc in each of the consignment which are crucially required for assessing the value of the goods. The suggestion to fix the value of zinc skimming equal to 65% of the value of zinc of prime quality quoted on LME is nearly absurd. Thus having noticed the above factors it can be concluded that there is a case for giving stay on all the demands made by the impugned order. There is also a need to remit this matter to the original authority for reconsideration of the matter on more acceptable principles.
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