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2018 (5) TMI 1307 - AT - CustomsValuation of imported goods - television sets - rejection of declared value - enhancement of value - rule 9 of Customs Valuation (Determination Of Value of Imported Goods) Rules, 2007 - non-compliance with the compulsory registration scheme - absolute confiscation - penalties. Whether the television sets are liable to confiscation under section 111 of Customs Act, 1962 for non-compliance with the compulsory registration scheme of the Bureau of Indian Standards? - Held that: - It is not in dispute that SONY Sony television sets have been procured from facilities which supply the same to M/s Sony India Ltd, and the registration for import by M/s Sony India Ltd being approved, compliance with the registration scheme is beyond question. The confiscation of SONY television sets under section 111(d) is not tenable - Insofar as SAMSUNG sets are concerned, there is no evidence of registration which warrants confiscation under section 111(d) as a natural consequence and, in view of the lack of registration, clearance into the domestic market on payment of redemption fine would run counter to the objectives of the Foreign Trade Policy in prescribing such registration as a pre-requisite for import. The quality of the goods and safety to the consumer is assured only with such registration - confiscation of SAMSUNG sets is valid. Valuation - Held that: - In the absence of any evidence of contemporaneous imports to support the enhancement, and the failure to taken into consideration factors that may had the effect of abating the value at which imports were made by M/s Sony India Ltd, we are unable to assent to the finding of misdeclaration. Consequently, the confiscation of SONY television sets under section 111(m) of Customs Act, 1962 for misdeclaration of value is not correct in law - As the SAMSUNG television sets are required to be re-exported without being cleared on payment of duty, valuation is not relevant. The Rules exist to detect and destroy counterfeits. Counterfeits can be detected only though the prescribed procedure. That does not appear to have occurred and, hence, the goods are not counterfeits. Section 11 and, consequently section 111, is not liable to be invoked. The confiscation being without authority of law is set aside as is the penalty. The confiscation of the SONY television sets and SONY panels set aside and the enhancement of assessable value of both - The confiscation of SAMSUNG television sets is upheld with the redemption fine, subject to re-export, being reduced to ₹ 5,00,000/- - appeal allowed in part.
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