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TMI Blog1992 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... Light (P 838) 1500 pcs. S$ 1.35/ pc. 5. Light (P 6017) 1000 pcs. S$ 1.10/ pc. 6. Stickers (Ex-0060) 500 sets S$ 0.60/ set. 7. Katana Stripes (stickers of different models). 7246 pcs. S$ 0.10 to 0.40/ pc. Investigation revealed that importation of similar items has been noticed at Calcutta port and according to information obtained from M/s. Sim Khee Mang Agencies, Singapore based on such invoices the party had misdeclared the price of Item Nos. 1, 4 & 5 above. The prices noticed for identical goods of Taiwan origin in those invoices were S$ 2.00/ pc, S$ 3.50/ pc and S$ 3.00/ pc against the declared price of S$ 0.90/ pc, S$ 1.35/ pc and S$ 1.10/ pc for Item Nos. 1, 4 & 5 respectively. Further on market enquiry, it was ascertained that Item No. 3, i.e. Horn (LS-6-5) 12V, Item No. 6 (Sticker) and Item No. 7 (Katana stripes sticker of different models) are being sold at a retail price of Rs. 350.00, Rs. 75.00 and Rs. 30.00. These basically are fancy items for which there is no steady or standard price/value. The customs duty incidence for horn is 196.45% and that of stickers is 183.567% and thus after allowing even a discount of 50% on the retail price, the price/value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x-2, Part B ibid. Therefore, the licence for Appendix-3, Part A produced by the importer for the items above cannot be accepted. In absence of a valid licence(s) the import of the goods is unauthorised in terms of Section 3(2) of the Import & Export (Control) Act, 1947 read with Section 11 of the Customs Act, 1962. The Additional Collector who adjudicated the proceedings after considering the reply defence and contentions of the party confirmed the charges and ordered for confiscation of the entire consignment under Section 111(d) of the Customs Act, 1962. However, he gave an option to redeem the goods on payment of fine of Rs. 4,00,000/-. He also imposed a personal penalty of Rs. 10,000/- on the Importer for importation of goods without a valid licence under Section 112. Hence, this appeal. 2. The points to be considered in the present case are that whether imported items are covered by a valid licence and Department was justified in enhancing value and consequently imposition of fine and penalty. 3. On the point of licence, it was argued by Sri V. Lakshmikumaran, learned counsel for the party that imported items, viz. Horn, light and stickers are items of spares and/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was mutuality of interest or excess consideration has been passed on to the supplier, nor is allegation in the show cause notice to that effect. Sri Laxmikumaran said that Department erred in replying upon the isolated transaction as against series of clearances allowed by the Customs authorities of identical items at identical prices at the material time. He contended that value cannot be based on extraneous evidence in the absence of positive proof of under-valuation either with clandestine dealing or of clandestine remittance, particularly after amendment of Section 14 of the Customs Act. 5. Refuting the arguments Sri Satish Kumar, learned D.R. said that the goods in question are consumer goods as narrated in the impugned order and irrespective of the fact whether they are consumer goods or otherwise, they require specific licence since electric items and components are covered under Serial No. 5 of Appendix 3, Part A and these goods are not components as no price is involved. As regards valuation, he submitted that since the same supplier supplied the identical goods to different buyers, lowest price of the highest quantity is deemed to be the price as there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by a valid import licence. 9. As regards the valuation I agree with him for different reasons recorded below. The proposal in the show cause notice is to enhance the value of Horn (AS-002) 12V; Light (P838), Light (H6017) from the declared value of Singapore $ 0.90/per piece, Singapore $ 1.35 per piece; Singapore $ 1.10 per piece to Singapore $ 2.00; Singapore $ 3.50 per piece; Singapore $ 3.00 respectively and in respect of Horn (L-5-6-5) 12 V; Stickers (Ex 0066) Katna Strips (stickers of different models) from the declared value of Singapore $ 3.75 per set; Singapore $ 0.60 per set; Singapore $ 0.10 per set to Rs. 350; Rs. 750; Rs. 30 respectively. The proposal is based on the computer print out and the invoice No. 225/0521A and 225/0622A/90 from M/s. Sein Kee Mong Agencies, Singapore in respect of first three items. In respect of other items the proposal to enhance the value is based on market enquiries. The Collector confirmed in his order the proposal made in the show cause notice. 10. Taking up the value of the last three items, we have pointed out the Collector enhanced the value on the basis of the market enquiries. Neither the show cause notice nor the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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