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2017 (2) TMI 49 - AT - CustomsClassification - valuation - import of old and used tyres - classified under CTH 40122090 or CTH 40122010? - whether the repairs made after clearance would effect the classification of goods? - Held that: - we are not concerned that after the clearance, the importers would make repairs on the tyres or get them retreaded. We cannot force the importers to do repairs or retreading on the same; therefore, the right classification for the remaining category of tyres, which cannot be used as such on the vehicles/autovehicles considering their current condition, would be under CTH No. 40122090, which is in the category of Other - there is no requirement of any import license for their import. The Customs (Revenue), therefore, cannot have Import Policy Objection for their clearance for home consumption. Valuation - rejection of transaction value - the goods have been purchased aboard, mainly as scrap - Held that: - where these goods are usable as such, there is clear-cut contravention of Import Policy issued by DGFT, Ministry of Commerce, Government Of India, but where the goods are non usable as such and finding classification in the category of Other under CTH No. 40122090, they do not contravene the Import Policy and are allowed import freely. However, both categories of these goods have been imported in all respective consignments, so these factors are to be given due weightage when the valuation is to be decided by the original adjudicating authority, as the matter deserves to be remanded to the original adjudicating authority for this purpose - matter on remand. Imposition of penalty - Held that: - the adjudicating authority has to keep the objective in mind that quantum of penalties and fines are imposed to such an extent so that in future such imports are strictly and seriously discouraged - separate penalties on partners or authorised signatories are not warranted, when penalties have been imposed on the appellant partnership/proprietor firms. In this regard, the original adjudicating authority is to decide on the quantum of penalties on the partners and authorised signatories after giving due consideration to the facts on record. Appeal allowed by way of remand.
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