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2005 (7) TMI 149 - AT - CustomsConfiscation and penalty - Post parcels - Misdeclaration of the goods - Penalty - HELD THAT:- Following the view taken by the Division Bench in the case of M. Vasi [2002 (11) TMI 135 - CEGAT, MUMBAI], I find that the allegation of misdeclaration of description and value of goods raised against the appellant cannot be sustained. The only ground for confiscation of the goods is misdeclaration. There being no misdeclaration, the confiscation of the goods cannot be sustained. Therefore, the confiscation (along with fine) is set aside. Consequently, the penalty also is vacated inasmuch as penalty u/s 112 is dependent on confiscability of goods u/s 111 of the Act. The appellant is entitled to release of the goods against payment of appropriate duty of customs. For the purpose of payment of duty, the goods require to be correctly valued. It appears from the records that the lower authorities did not even attempt valuation in terms of the relevant Valuation Rules. The value declared by the supplier is HK $ 2500. It appears from the records that, in his letter dated 12-3-2003, the appellant, inter alia, claimed that the contents of the baggage had been correctly declared. Hence it has to be held that the appellant (importer) accepted the exporter's declaration. In other words, HK $ 2500 should be treated as the transaction value. It is up to the Customs authorities to inquire into the correctness of this value. Hence, after rejecting the value of Rs. 5 lakhs estimated by the lower authorities, I direct the original authority to determine the correct value of the goods under the Customs Valuation Rules read with Section 14 of the Customs Act after giving the appellant a reasonable opportunity of being heard. It will be open to the appellant to clear the goods by paying the appropriate duty. In the result, the impugned order gets set aside and the appeal stands allowed by way of remand
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