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2015 (4) TMI 560 - AT - CustomsConfiscation of goods - Redemption fine - Classification of goods - Provisional assessment - antique goods - Held that:- When the goods were examined in the presence of the importer, the appellant-importer provided the information and the goods were segregated as "more than 100 years old" and "less than 100 years old". - appellant Sri. Farokh S. Todywala has clearly admitted that he is in the business of procuring the old coins and medals from collectors and these are put to auctions - From these evidences available on record, it is difficult to accept the plea that the goods merit classification under Chapter 71 or 74. Goods falling under these chapter are traded by dealers in these goods and are for use as such. They are not sold by numismatists of through auctions and they also do not have any historic or numismatic interests. Therefore, the classification of these goods under Chapter 71 or 74 based on the metal content is clearly ruled out. In any case, Chapter Note 3(p) to Chapter 71 and Chapter note to 74 clearly exclude these items from the scope and coverage of the articles falling under the said chapters. As regards goods which are less than 100 years old, they do not qualify as antiques because of the age factor and therefore, they would more appropriately fall under heading 97.05. As regards goods of age more than 100 years, only goods which are not covered under CTH 97.01 to 97.05 merit classification under CTH 97.06 as is clear from the HSN Explanatory Notes. - As per the statement of the appellant importer, the goods imported by him are old and used items and would be sold through auction to collectors who have numismatic or historic interest in collections. From these evidences available on record and the coverage of CTH 97.05 as given in the HSN explanatory notes, we are of the considered view that the goods imported by the appellant merit classification under CTH 97.05. - Since the goods falling under CTH 97.05 are restricted items, they need a licence for importation. In the present case, it is a fact on record that the appellant did not have the requisite licence and the goods are liable to confiscation under section 111(d) of the Customs Act. In view of this legal position, the confiscation and the option to redeem the goods on payment of fine ordered by the adjudicating authority cannot be faulted at all. The last issue is regarding the direction given in the impugned order to keep the assessments provisional since the value declared is notional and not the real transaction value. However, in the show cause notice issued to the appellant, there is no such proposal and the show cause notice specifically proposes to levy the goods to duty on a value of ₹ 9,62,713/- at the rate applicable to goods falling under CTH 9705. Thus, the direction to keep the assessment provisional is contrary to the proposal in the show cause notice and therefore, cannot be sustained and accordingly, we set aside the same. - Thus while we uphold the classification of the goods under CTH 9705 and the consequent confiscation with option for redemption and imposition of penalty, we set aside the direction to keep the assessment provisional on account of valuation - Decided partly in favour of assessee.
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