2000 (8) TMI 683 - AT - Customs

Summary

Issues:
1. Appeal against the Order-in-Appeal No. 184/93 dated 12-5-1993 of Collector of Customs (Appeals), Calcutta.
2. Enhancement of value from US $ 119.20 CIF per piece to US $ 180 under Rule 8 of the Customs Valuation Rules, 1988.
3. Confiscation of impugned goods and imposition of fine and penalty.
4. Allegation of declared price not representing the transaction value in the course of international trade.
5. Failure to establish relationship between manufacturer, supplier, and importer influencing the price.
6. Application of Customs Valuation Rules and sequential application of rules.
7. Confirmation of the order-in-original by the Commissioner (Appeals).
8. Lack of infirmity in the impugned order.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Kolkata was against the Order-in-Appeal No. 184/93 dated 12-5-1993 of the Collector of Customs (Appeals), Calcutta. The Customs had enhanced the value of imported goods from US $ 119.20 CIF per piece to US $ 180 under Rule 8 of the Customs Valuation Rules, 1988. The impugned goods were confiscated with an option for redemption on payment of a fine of Rs. 1,00,000/- and a penalty of Rs. 25,000/- imposed on the appellant. The Commissioner (Appeals) set aside the order-in-original, citing a clear confirmation by the manufacturer regarding the declared price.

The Revenue filed the appeal on three grounds: first, the declared CIF value being significantly lower than comparable goods; second, a suspected relationship between the Taiwan manufacturer, Hong Kong supplier, and the Indian importer; and third, the price not representing the transaction value in international trade. The Tribunal noted the absence of the respondent's representation during the hearing but considered documents forwarded by the respondent's Advocate for review.

Upon examination, the Tribunal found the Revenue failed to prove the declared price did not represent the transaction value or establish any influencing relationship between the parties. The Tribunal endorsed the Commissioner (Appeals)'s findings, emphasizing the application of Customs Valuation Rules and the sequential application of rules. The Tribunal upheld the Commissioner (Appeals)'s decision to set aside the order-in-original, confiscation, and penalty, allowing the appeal with consequential relief.

In conclusion, the Tribunal rejected the Revenue's appeal, confirming the order-in-appeal. The decision highlighted the importance of establishing the transaction value in international trade, the absence of influencing relationships, and the correct application of Customs Valuation Rules to determine the value of imported goods.