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TMI Blog2013 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... as 'wall lamps' were found to be wall clocks with LED, the goods declared as "table lamps" were found to be table lamps with SFL and the goods declared as "floor lamps" were found to be humidifiers. However, the quantity of humidifier was very small. In view of the mis-declaration in respect of certain items and also in view of the fact that the declared value per kg. of the goods appeared to be much lower than the per kg. value of the raw materials which go into the manufacture of these items viz. plastics, glass, galvanized sheets, stainless steel, H.R. Sheet, Aluminium, brass, copper, etc, the investigation officers were of the view that the declared value of the goods is on much lower side and is not acceptable. Accordingly, the inquiry was made to ascertain the actual value of the goods. In this regard, the officers sought opinion of the M/s.ORMA Lights, a dealer in these items and M/s. ORMA Lights vide quotation dated 18.2.2006 gave estimated wholesale market price of the various items covered under these bills of entries. On this basis applying Rule 7 of the Customs Valuation Rules, 1988, the officers determined the transaction value on the basis of the wholesale market pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leaded that except for the items declared as "wall lamps" and "floor lamps" which on examination were found to be wall clocks and humidifiers, there was no misdeclaration in respect of other items, that the table lamps were actually table lamps fitted with CFL and it cannot be said that the description had been mis-declared, that while the quantity of humidifiers is very small, there is no mis-declaration in respect of the items declared as "wall lamps", that no evidence has been adduced by the Department in supports of its allegation of undervaluation, as no bill of entry showing contemporaneous import of identical goods or similar goods at higher price has been produced, that transaction value cannot be rejected on the basis of price of raw material in the domestic market, that for this purpose, the price of raw materials in the country of export has to be taken into account, that there was absolutely no basis for rejection of declared transaction value, that even if the declared transaction value is rejected, the transaction value has to be ascertained by sequentially applying Rule 5, 6, 6A, 7, 7A and 8 of the Customs Valuation Rules 1988, that the department cannot jump directl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in the impugned order. 6. We have considered the submissions from both the sides and perused the records. 7. The items imported, as described in the supplier's invoices are chandelier lamps, ceiling lights, glass, wall lamps, spot lights, floor lamps, down lamps and table lamps. It is only the three items- wall lamps, table lamps and floor lamps which on examination were found to be wall clock with LED, table lamp with CFL and humidifiers. In respect of other items, there is no allegation of mis-declaration of description. 7.1 In respect of the goods declared as "table lamp", we are of the view that since the goods on examination were found to be table lamp with CFL, it cannot be said that there was mis-declaration as a table lamp with light bulb fitted in it would also be a table lamp. Thus, it is only the items mentioned in the invoice as "floor lamps" and "wall lamps" which can be said to have been mis-declaration with regard to description and since description is misdeclared, the declared value also become suspect, and the same would have to be rejected. Therefore, we hold that transaction value of items declared as "floor lamps" and "wall lamps" has been correctly rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese goods based on the price of their raw materials in India. In view of this, we hold that there is no substance in the allegation of mis-declaration of value in respect of the goods other than the "wall lamps" and "floor lamps" and, therefore, neither the declared transaction value in respect of these goods can be rejected, nor the goods are liable for confiscation under Section 111(m). 9. As regards the confiscation of the goods under Section 111(d) for not affixing the MRP, in terms of Note 5 (e) of General Notes of the Foreign Trade Policy, all pre-packaged commodities imported in India shall, in particular, carry maximum retail sale price at which the commodity in packaged form may be sold to the ultimate consumer. This provision is applicable to the commodities imported in pre-packaged form. The impugned order does not give any finding as to whether the goods imported were in bulk packages or were in pre-packaged form meant directly for sale to ultimate consumers. Unless the goods imported were in pre-packaged form meant directly for sale for ultimate consumers, the provisions of Note 5 (e) of General Note of the Foreign Trade Policy readwith Section 11(1) of the Foreign Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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