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2017 (9) TMI 8 - AT - CustomsMis-declaration of imported goods - goods were declared as glass sets, but on verification, a total of 857 cartons of glass sets along with 248 cartons of glass chatons, of different marks and sizes, were found in the container - whether or not there is a violation of provisions of Customs Act on the part of the importer, M/s Parth Corporation? - Held that: - The QR code on the packages as well as the manner of storage of, initially undeclared, items (chatons) in the consignment clearly established that M/s Parth Corporation were aware of the contents of the shipment and also under-valuation of the imported goods - the impugned order is sustainable and accordingly we hold that M/s Parth Corporation have violated the provisions of Customs Act by their act of attempted clearance by mis-declaring the import item as well as value, in the bill of entry. Penalty u/s 112 of CA - Held that: - We find no supporting evidence recorded in the impugned order to conclude that M/s Pajil & Co. had tried to aid the original importer in execution of wrong high sea sale agreement and had been an active member of this conspiracy - We find no support, by way of evidence, discussed in the impugned order - Entering into high sea sale agreement based on the information provided by the original importer by itself, will not attract the penal provisions of Section 112 unless evidence are available to the effect that such high sea buyer had knowledge of possible undeclared item in the consignment and under-valuation - penalty not sustainable. Valuation of the imported consignment - whether the original authority is right in rejecting the declared value in terms of Rule 12 of the Valuation Rules? - Held that: - it is to be noted here that the person behind the import clearly stated that the value declared is not correct and they are agreeable to enhancement of value. In fact, the importer stated that they were willing to pay the differential custom duty, as per enhancement proposed by customs along with the penalty and fine. It is clear, that based on such facts and evidences, that the original authority is correct in invoking Rule 12 for rejection of declared value. Whether or not the original authority followed the provisions of valuation rules for fixing the correct assessable value? - Held that: - The rules, which were reproduced in para 14 of the impugned order, clearly stipulate that when the transaction value is fixed either in terms of Rule 4 or Rule 5, if more than one transaction value of such goods is found, the lowest such value shall be used to determine the value of imported goods. The methodology adopted in the impugned order is contrary to the said legal provisions - the valuation of the imported goods requires re-examination by the original authority in line with the applicable provisions of valuation rules - also, the aspect of confiscation and quantum of redemption fine needs re-examination - matter on remand. Appeal allowed - decided partly in favor of appellant, partly decided against appellant, and part matter on remand.
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