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2015 (5) TMI 240 - SC - CustomsValuation of goods - Demand of differential duty - Redemption fine - Held that:- Comparable instance which was taken into consideration by the Commissioner was not that of "identical goods" but "similar goods". This is so stated by the Commissioner in his order itself. - when the Commissioner rejected the transaction value declared by the respondent applying Rule 10A of the Customs Valuation Rules, 1988, on that basis he held that Rule 4(1) would not apply. Thereafter he proceeded sequentially from Rule 5 onwards. As far as Rule 5 is concerned, again he stated that this would not apply as there was no evidence of "identical goods". It is for this reason he undertook the exercise, as contemplated in Rule 6, by giving the example of "similar goods". We would like to point out at this stage that the instances which were given by the Department and even by the respondent himself, no objection was raised by the respondent that these instances were not of similar goods. Therefore, relying upon those instances by the Commissioner cannot be faulted. Price of ₹ 58/- has not been accepted by the Commissioner, and rightly so, by giving a very valid reason, namely, even in respect of that import by the importer declaring the value of ₹ 58/-, a show cause notice had been issued by the Department and the case was under scrutiny. In the show cause notice which was issued by the Department the price proposed was ₹ 90/- per piece. Thus, the entire basis of the Tribunal's order is misplaced as it is founded on total misconception of law and is also contrary to the facts on record. For the aforesaid reasons we set aside the order of the Tribunal and affirm the order of the Commissioner insofar as it relates to redemption of the value declared by the respondent at ₹ 36/- per piece and fixing the value at ₹ 73.94 per piece, as well as demand of differential duty on that basis. - Decided in favor of revenue. Redemption fine of ₹ 20 lakhs and the penalty of ₹ 5 lakhs which is imposed in the facts of this case is on a higher side. Insofar as redemption fine is concerned, the same is reduced to ₹ 6 lakhs which is the equivalent to the differential duty and penalty imposed is set aside altogether.- Decided partly in favour of assessee.
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