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Ms. Divine International Versus Commissioner of Customs New Delhi

Confiscation of goods and imposition of penalty - Import of old and used photocopier machines of Cannon brand - Enhancement in the value of imported goods - Held that:- it is a settled law that in terms of provisions of Rule 3 of the Customs Valuation Rules, the transaction value has to be accepted as the correct assessable value unless country evidence is available to show that the payments made by the importer to the exporter stand influenced by the other compelling circumstances. In view of t .....

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Order No. 51803/2016 - Dated:- 17-5-2016 - Ms. Archana Wadhwa, Member (Judicial) and Mr. B. Ravichandran, Member (Technical) Shri KK Anand, Advocate for the Appellants Shri Rajeev Gupta, AR for the Respondent ORDER As per facts on record, the appellant, who is importer of old and used photocopier machines of Cannon brand, filed a bill of entry dated 3.6.09, through their CHA declaring the import of 241 old and used Photocopier Machines at the declared transaction value of ₹ 28,50,065/-, a .....

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epresentative of CHA as also the representative of Cannon brand manufacturers in India. As per the certificate given by Shri Sanjeev Agarwal, the value of goods was under valued to the extent of 250% and the same should have been to the extent of ₹ 94.19 lakh approx.. attracting duty of ₹ 12,08,225/-. On further investigation, the statement of Shri Rajesh Kumar, proprietor of the appellant firm was recorded on 26.6.09 wherein he deposed that he had placed the order for supply of 241 .....

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hartered Engineer and has put his signature on the same; that he was ready to pay the customs duty on the basis of valuation arrived at as per the certificate supplied by Shri Sanjeev Agarwal Chartered Engineer. He also gave a cheque for total duty amount of ₹ 12,81,730/- 3. As the value given by Shri Rajender Pal, Chartered Engineer was much on the lower side than the value given by Shri Sanjeev Agarwal, Chartered Engineer, a statement of Shri Rajender Pal was also recorded on 25.6.2009. .....

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t report. As such, he agreed with the fact that report given by Shri Sanjeev Agarwal, Chartered Engineer is more authenticated certificate of valuation inasmuch as the same is based upon 100% physical verification and details as per the panchnama dated 15.6.09. 4. Based upon the above, the appellants were given a show cause notice proposing to enhance the value of the imported goods as also proposing confiscation of the same and imposition of penalty on the importer as also on the proprietor of .....

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ineer, who is a Government approved value, had investigated the consignment in question and he has reported the fact that all the machines were inspected and has given a value which is much less than the value given by Shri Sanjeev Agarwal, Chartered Engineer. He submitted that when there was certificate from Shri Rajender Pal, there was no requirement for getting the goods examined second time from another Chartered Engineer without first rejecting the report of Shri Rajender Pal on reasonable .....

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r contention that machines were of different year of manufacture, it was not understood as to how the valuation of the same was arrived at by Shri Sanjeev Agarwal, who had not given the valuation in relation to the year of manufacture. Accordingly they prayed for cross examination of Shri Sanjeev Agarwal which stand declined by the adjudicating authority. As such, by adopting the value given by Shri Sanjeev Agarwal, the adjudicating authority enhanced the value of the imported goods, demanded du .....

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cogent evidence. In the entire order of the Commissioner, he has not even alleged that the appellant had paid more than the payment as reflected in the invoice. We note that it is settled law that in terms of provisions of Rule 3 of the Customs Valuation Rules, the transaction value has to be accepted as the correct assessable value unless country evidence is available to show that the payments made by the importer to the exporter stand influenced by the other compelling circumstances. Rule 3 o .....

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by any subsequent sale will accrue directly or indirectly to the seller; that the buyer and seller are not related. Even in terms of sub-rule 3 of Rule 3, where the buyer and seller are related, the transaction value was to be accepted provided that examination and circumstances of sale of the imported goods indicated that relationship did not influence the price. As such, it is clear from the reading of the said rule that transaction value is required to be accepted as correct assessable value .....

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has to be adopted as the correct assessable value. 7. Our above conclusion is strengthened by the decision of Hon ble Supreme Court in the case of Motor Industries Co. Ltd. vs CC [2009 (244) ELT 4 (SC)]. The issue involved before the Apex Court was in respect of the valuation of second hand machinery imported by the assesse. By observing that the transaction value cannot be rejected without recording special or extraordinary reasons, it was held that the declared transaction value would be the .....

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