2017 (8) TMI 766 - AT - Customs

Valuation of imported goods - used monitors of different brands in assorted screen sizes - enhancement of assessable value - Held that - it is very clear that the imported goods were used monitors of different brands in assorted screen sizes and the department had to resort to Chartered Engineer assessment and also resorted to Customs Valuation Rules, 1988 to arrive at the enhanced value of US 8861.50. This being so, they cannot now allege arbitrariness. We therefore do not find any reason to interfere with the enhancement of the assessable value. Redemption fine - penalty - Held that - it is very reasonable and proportionate to the enhanced value and also to the nature of the offence. This being so, the prayer of the appellants on this score also fails to impress. Appeal dismissed - decided against appellant.

Summary

Issues: Import of used monitors, enhancement of declared value, confiscation of goods, redemption fine, penalty imposition.

Analysis:
The appeal in this case pertains to the import of used monitors declared as "Used 19 inches & 17 inches CRT Monitors" of different brands with a declared invoice value of USD 6204. The department conducted a first check appraisement due to the second-hand nature of the goods. Upon finding discrepancies in the declared value, the importer accepted an enhanced value of USD 8,861.50 for customs duty payment without a Show Cause Notice or Personal Hearing. The original authority rejected the declared value, determined it to be US$ 8861.50 C&F, and confiscated the goods, offering redemption on payment of a fine of ?91,000 under Section 125 of the Customs Act, 1962. Additionally, a penalty of ?49,000 was imposed on the appellant under section 112 (a) of the Customs Act, 1962.

During the hearing, the appellant's advocate argued against the imposition of personal penalty, claiming that the redemption fine and penalty were arbitrary and unreasonable due to incorrect market price assessment. The Commissioner (Appeals) had previously rejected the appeal, leading to the appeal before the forum. After considering the arguments and facts, the tribunal noted that the imported goods were used monitors of different brands, necessitating assessment by a Chartered Engineer and application of Customs Valuation Rules, 1988 to determine the enhanced value of US$ 8861.50. Consequently, the tribunal found no grounds to challenge the enhanced assessable value.

Regarding the redemption fine and penalty, the tribunal deemed them reasonable and proportionate to the enhanced value and the nature of the offense. Consequently, the appellants' plea on this matter was dismissed. Ultimately, the tribunal found no merit in the appeal and dismissed it accordingly, upholding the decisions on the enhanced value, redemption fine, and penalty.