2004 (6) TMI 230 - AT - Customs

Summary

Issues: Customs valuation - Enhanced value of imported goods - Alleged admission by importer - Contemporaneous import - Applicability of Customs Valuation Rules, 1988

The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with an appeal challenging the enhancement of the value of watch modules imported by the appellants. The Commissioner of Customs (Appeals) had upheld the adjudication order, increasing the declared value per piece from HK $ 0.32 to HK $ 1.35, resulting in a duty demand of Rs. 22,85,857. The reasons cited for the value enhancement were an alleged admission by the importer regarding the value of the goods and the contemporaneous import of another company, M/s. Triveni Industries.

Upon review, the Tribunal found that the importer's statement did not contain any admission regarding the value of the imported goods. The statement only mentioned the readiness to accept delivery of watch modules at a price ranging from US $ 0.19 to US $ 0.21 FOB Hong Kong from a different company, M/s. Artek Electronics, not the actual importer in this case. Additionally, the Tribunal noted that the contemporaneous import by Triveni Industries, at a higher value, was for a lesser quantity and under different circumstances, making it unreliable for determining the value of the goods in question.

Furthermore, the Tribunal highlighted that the examination report of goods imported by the same appellant in January 1994, at a higher value, indicated that they were branded goods, rendering their value inapplicable to the present case. Therefore, Rule 5 of the Customs Valuation Rules, 1988, which was used to enhance the value, was deemed not applicable. Consequently, the Tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellants.