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2005 (10) TMI 184 - AT - CustomsValuation of imported goods - integrated circuits - transistors - second enhancement of value based on contemporaneous imports - HELD THAT:- The country of origin of the goods imported by the appellant is Singapore and Hong Kong whereas the country of origin of the goods mentioned in the show-cause notice relied upon by the Revenue is Japan. Further it is found that the first determination of the value was based on the letter issued by the Directorate of Valuation, the directorate of Valuation again issued a letter dated 19-6-98 where it has been pointed out in respect of Integrated Circuit there is no uniformity in the assessment practice of this item and that different values are being accepted by different Customs Houses and it is also pointed out that where the parameters like the country of origin, part number, quantity, commercial level, timing of import etc. are identical or comparable, the assessable values differ significantly. As regards Integrated Circuits (IC), the statement along with this letter shows that the ICs which are imported by the appellant are being imported into India declaring different prices, if we go by the Valuation Rules than the lowest value is to be taken for the purposes for assessment. In respect of the transistor, the revenue want to rely upon quotation issued by M/s. Electromark, it is settled law that value of the goods cannot be enhanced on the basis of quotation. Further on query made by the appellant M/s. Electromark denied the issuance of the quotations which was relied upon by the Revenue. Another instance is relied upon by the Revenue for enhancing value of transistors is imported by N. K. Overseas vide bill of entry dated 11-9-98 - Tribunal in the case of PARAG SHETH VERSUS COMMISSIONER OF CUSTOMS, AHMEDABAD [2005 (5) TMI 138 - CESTAT, MUMBAI] where the Revenue relied upon the same bill of Entry for enhancing the value of the goods imported by Parag Sheth set aside the order whereby the value was enhanced on the basis of import of Ms N.K. Overseas. The enhancement of the value of the imported goods second time by issuing a show cause notice is not sustainable hence set aside. Consequently, penalties are also set aside and the appeal is allowed.
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