2003 (3) TMI 175 - AT - Customs

Summary

Issues involved:
1. Classification of goods under CTH 2805.40
2. Valuation of the goods imported

Classification Issue Analysis:
The case involved an appeal against an order enhancing the value of imported Mercury and classifying it under CTH 2805.40. The department argued that Mercury imported should be classified under this heading, as it is different from Parada in Ayurveda. The Tribunal upheld this classification, stating that specific headings take precedence over general ones, hence Mercury falls under CTH 2805.40.

Valuation Issue Analysis:
Regarding the valuation issue, the department relied on imports at different ports in July and August 2002 to enhance the value to USD 93 per flask. However, the Tribunal found that the quantity and circumstances of those imports were not comparable to the present case involving 500 flasks. Citing legal precedents, the Tribunal emphasized that a higher discount for bulk imports is not unusual, and the department failed to provide sufficient evidence to reject the declared transaction value. As a result, the Tribunal set aside the order enhancing the value, confiscating the goods, and imposing penalties, while upholding the classification under CTH 2805.40. The appeal was allowed except for the classification issue.

This detailed analysis of the legal judgment highlights the key arguments, findings, and legal principles applied in resolving the issues of classification and valuation of the imported goods.