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2024 (2) TMI 314 - AT - CustomsClassification of imported goods - Rubber Processing Oil - classifiable under Chapter Heading No. 27101990 as classified by the Appellants or under Chapter Heading No. 27079900 as classified by the Revenue? - enhancement of value of the imported RPO based on the consent letters given by the directors of the Appellants at the time of release of the goods, without following the due process of law as contemplated under Section 14 of the Customs Act read with Customs (Determination of Value of imported value) Rules, 2017 - mis-declaration of Country of Origin in the Bills of entry - quantum of penalties and redemption fine imposed disproportionate to differential duty. HELD THAT:- It is settled that the test report can be applied only in respect of the samples tested. Since in the present case tests of all the goods were not carried out, the claim of the classification of the department is applicable only in respect of goods contained in the containers from which the samples were drawn and not for the other containers. Enhancement of the valuation - HELD THAT:- The enhancement was made merely on the consent letters given by the directors of the appellant. In our view on hear say from director valuation cannot be decided if there is any doubt on the valuation, the due process of law as contemplated under Section 14 of the Customs Act read with Customs (Determination of Value of imported value) Rules, 2017 must be complied with. However, in the present case neither any contemporaneous value was adopted nor any method as prescribed under Section 14 read with Custom Valuation Rules, 2007 was followed. Therefore, merely on the basis of statements of director valuation cannot be enhanced. Therefore, the enhancement of the value is not sustainable in the facts of the present case. This issue has been considered in the case of Guru Rajendra Metal Alloy wherein the tribunal held that only on the basis of the consent letters of the importer enhancement of valuation cannot be made - the enhancement of the value by the lower authorities is without any legal basis. Hence, the same will not sustain and accordingly, the enhancement of the value done by the Revenue is set aside. Mis-declaration of Country of Origin in the bills of entry filed by the appellant - HELD THAT:- Firstly the appellant have not been benefited by the incorrect declaration of country of origin, if any. Moreover, it is not the appellant who has wrongly mentioned the country of origin certificate. Therefore, if there is a mis-declaration of country of origin the appellant being not the party to make any incorrect declaration cannot be held responsible and no consequential penalty can be imposed on the appellant - in the case of Agarwal Industrial [2020 (2) TMI 235 - CESTAT BANGALORE] it can be seen that in the identical circumstances, this Tribunal held that for incorrect mention of country of origin, the importer cannot be penalized. Accordingly, in the present case also considering overall facts and the fact of incorrect declaration, if any, regarding country of origin in the Country of Origin Certificate, the appellant is not liable for any penalty or fine. Since the impugned order against the main appellants is not sustainable, there is no reason to continue the personal penalty upon the individuals co-appellants. Appeal allowed.
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